Can Amerispec Inspection Services modify the insurance requirements periodically?

According to Amerispec Inspection Services's 2025 Franchise Disclosure Document, Amerispec Inspection Services retains the right to modify insurance requirements periodically. Franchisees must adhere to any new insurance requirements implemented by Amerispec Inspection Services.

The current insurance requirements mandate that franchisees maintain specific coverage, types, and amounts as detailed in the Operations Manual or in writing. These requirements include employer's liability insurance with a minimum limit of $500,000, commercial general liability insurance with a limit of at least $1,000,000, business automobile insurance with a minimum limit of $1,000,000, and errors and omissions insurance with a minimum limit of $1,000,000. Additionally, Amerispec Inspection Services and its affiliates must be listed as additional insured on all policies, with specific endorsements and stipulations regarding subrogation rights and notification of policy changes.

This ability to modify insurance requirements is a fairly standard practice in franchising, allowing the franchisor to adapt to changing market conditions, legal requirements, and risk landscapes. For a prospective Amerispec Inspection Services franchisee, this means they need to be prepared for potential increases in insurance costs or changes in coverage requirements over the term of their franchise agreement. It is important to factor in potential future insurance adjustments when assessing the financial viability of the franchise. Franchisees should maintain open communication with Amerispec Inspection Services regarding insurance matters to ensure compliance and manage any associated costs effectively.