What are the requirements for the insurance company writing the policies for an Amerispec Inspection Services franchise?
Amerispec_Inspection_Services Franchise · 2025 FDDAnswer from 2025 FDD Document
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 ensure that all insurance policies meet specific requirements. The insurance company writing the policies must be satisfactory to Amerispec Inspection Services. The policies must name Amerispec Inspection Services, its affiliates, and their officers, directors, employees, agents, and partners as additional insured, with the exception of the Workers' Compensation policy.
Furthermore, the insurance policies must include endorsements from the insurance companies that waive all rights of subrogation against Amerispec Inspection Services for workers' compensation insurance, commercial general liability insurance, and business automobile liability insurance. This means the insurance company cannot seek to recover costs from Amerispec Inspection Services if they pay out on a claim that would otherwise be the responsibility of Amerispec Inspection Services.
Finally, the insurance policies must stipulate that Amerispec Inspection Services will receive copies of all notices of cancellation, non-renewal, or coverage reduction or elimination at least 10 days prior to such an event. This allows Amerispec Inspection Services to ensure continuous coverage and mitigate potential risks associated with lapses in insurance. These requirements ensure that Amerispec Inspection Services is protected from potential liabilities and maintains oversight of the franchisee's insurance coverage.