What is the minimum limit for Business automobile insurance required for an Amerispec Inspection Services franchise?
Amerispec_Inspection_Services Franchise · 2025 FDDAnswer from 2025 FDD Document
may revise the list of approved suppliers from time to time in our sole discretion.
Insurance. You must insure your Franchised Business with coverage, types, and amounts that we specify in the Operations Manual or otherwise in writing. You cannot begin offering services to the public unless you are adequately insured. Our present insurance requirements are:
- (a) Employers' liability with a minimum limit of $500,000 in workers' compensation and other statutory required programs;
- (b) Commercial general liability insurance covering the operation of your Franchised Business with a limit of at least $1,000,000;
- (c) Business automobile insurance for hired, owned and non-owned or any auto with a minimum limit of liability of $1,000,000 for both bodily injury and property damage;
- (d) Errors and omissions with a minimum limit of liability of $1,000,000; and
- (e) Additional insured by schedule, including Franchisor, others named, and per contractual requirement.
If you offer commercial inspection services, we require you to carry Errors & Omission insurance that covers commercial inspections. Most E&O master insurance policies cover buildings not exceeding four stories in height and 50,000 square feet and 20 acres in size. Larger buildings may require additional coverage; check with your E&O insurance carrier prior to inspecting such larger buildings.
For all insurance policies, you must list us and our affiliates as an additional insured. We reserve the right to modify these insurance requirements periodically and you must meet any new requirements.
All insurance policies procured and maintained by you must (i) be written by an insurance company satisfactory to us, (ii) name us, our affiliates, and our officers, directors, employees, agents, and partners, as an additional insured (except Workers' compensation policy), (iii) contain endorsements by the insurance companies waiving all rights of subrogation against us for workers' compensation insurance, commercial general liability insurance,
and business automobile liability insurance, and (iv) stipulate that we will receive copies of all notices of cancellation, non- renewal or coverage reduction or elimination at least 10 days prior to such event.
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 20–22)
What This Means (2025 FDD)
According to Amerispec Inspection Services's 2025 Franchise Disclosure Document, franchisees must maintain business automobile insurance with a minimum liability limit of $1,000,000 for both bodily injury and property damage. This insurance coverage must extend to hired, owned, and non-owned vehicles used in the business.
Amerispec Inspection Services requires that the insurance policy lists them and their affiliates as additional insured parties. Furthermore, the insurance company must waive all rights of subrogation against Amerispec Inspection Services for workers' compensation, commercial general liability, and business automobile liability insurance. The franchisee is also obligated to provide Amerispec Inspection Services with copies of all notices regarding cancellation, non-renewal, or any reduction or elimination of coverage at least 10 days before such changes take effect.
If a franchisee fails to maintain the required insurance coverage or provide satisfactory evidence of such coverage, Amerispec Inspection Services reserves the right to obtain the necessary insurance on the franchisee's behalf. The franchisee will then be responsible for reimbursing Amerispec Inspection Services for all costs and premiums incurred in obtaining this coverage. This requirement ensures that all Amerispec Inspection Services franchises maintain adequate protection, safeguarding both the franchisee's and franchisor's interests.