What rating must the insurer have for the insurance policy that an Amorino franchisee is required to obtain?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
- (2) Such policy or policies shall: (a) be written by insurer(s) licensed and admitted to write coverage in the state in which the Franchised Business is located and with a rating of "A" or better as set forth in the most recent edition of Best's Key Rating Guide; (b) name Amorino and its Affiliates, and their partners, officers, subsidiaries, Affiliates, shareholders, directors, regional directors, agents, and employees as additional insureds on a primary noncontributory basis to the general liability policy and the auto liability policy, (c) the additional insured coverage must be provided on an Additional Insured Grantor of Franchise Endorsement form CG2029 (or an endorsement form with comparable wording acceptable to
Source: Item 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, franchisees must secure insurance policies from insurers with a rating of "A" or better. This rating is based on the most recent edition of Best's Key Rating Guide, a widely recognized standard in the insurance industry for assessing an insurer's financial strength and ability to meet its obligations.
This requirement ensures that Amorino franchisees are working with reputable and financially stable insurance providers. By mandating a minimum rating of "A", Amorino aims to minimize the risk that a franchisee's insurance claims will be unpaid or delayed due to the insurer's financial difficulties. This protects both the franchisee and Amorino from potential liabilities and losses.
In practical terms, prospective Amorino franchisees should verify that their chosen insurance provider meets this rating standard. They may need to shop around to find an insurer that qualifies and offers competitive rates while still meeting Amorino's requirements. Failure to maintain insurance coverage with a qualified insurer could result in a breach of the franchise agreement and potential penalties.