What rating must the insurance companies providing coverage for an Amerispec Inspection Services franchise maintain?
Amerispec_Inspection_Services Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall maintain such additional coverage and higher policy limits as may reasonably be specified for all franchisees from time to time by the Company.
- 13.2 Coverage Requirements. All insurance coverage required above shall be maintained under one (1) or more policies of insurance containing the amounts and types of coverage from time to time prescribed by the Company. Such coverage must be obtained from insurance companies maintaining an A rating by Alfred M. Best & Company, Inc., or such other insurance companies approved in advance by the Company. All errors and omissions, and public liability and business automobile liability insurance policies, shall name the Company as an additional insured and shall provide that the Company receive 10 days' prior written notice of termination, expiration, reduction or cancellation of any such policy. The Franchisee shall submit to the Company, annually within 30 days of the effective date of the policy, a copy of the certificate of insurance or other evidence of the renewal or extension of each such insurance policy as requested by the Company.
- 13.3 Failure to Maintain. If the Franchisee, at any time, fails or refuses to maintain any insurance coverage required by the Company or fails to furnish satisfactory evidence thereof, the Company, at its option and in addition to its other rights and remedies hereunder, may obtain such insurance coverage on behalf of the Franchisee, and any costs of premiums incurred by the Company in connection therewith shall be paid by the Franchisee on demand.
Source: Item 23 — Receipts (FDD pages 47–172)
What This Means (2025 FDD)
According to Amerispec Inspection Services' 2025 Franchise Disclosure Document, the insurance companies providing coverage for franchisees must maintain an A rating by Alfred M. Best & Company, Inc., or be otherwise approved in advance by Amerispec Inspection Services. This requirement applies to all insurance coverage that Amerispec Inspection Services requires the franchisee to maintain.
Amerispec Inspection Services also mandates that it be named as an additional insured on the franchisee's errors and omissions, public liability, and business automobile liability insurance policies. Furthermore, Amerispec Inspection Services must receive 10 days' prior written notice if any of these policies are terminated, expire, are reduced, or are canceled.
To ensure compliance, franchisees must submit a copy of their certificate of insurance or other evidence of renewal or extension to Amerispec Inspection Services annually, within 30 days of the policy's effective date. If a franchisee fails to maintain the required insurance coverage or provide satisfactory evidence of it, Amerispec Inspection Services has the option to obtain the necessary coverage on the franchisee's behalf, with the franchisee responsible for paying the premiums upon demand.