What evidence of insurance is an Atwell Suites licensee required to furnish to IHG during the license term?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
At all times during the License Term, Licensee will furnish to IHG certificates of insurance evidencing the term and limits of coverage in force, names of applicable insurers and persons insured. Revised certificates of insurance shall be forwarded to IHG each time a change in coverage or insurance carrier is made by Licensee, and/or upon renewal of expired coverages. At IHG's option, Licensee may be required to provide certified insurance policy copies. If Licensee fails to procure or maintain the insurance coverages and limits set forth in paragraph 8.B., IHG will have the right and authority (but not the obligation) to procure such insurance at Licensee's cost, including any costs incurred by IHG for procurement and maintenance of such insurance.
Source: Item 23 — Receipts (FDD pages 99–486)
What This Means (2025 FDD)
According to Atwell Suites's 2025 Franchise Disclosure Document, franchisees must provide IHG (InterContinental Hotels Group) with evidence of insurance coverage throughout the license term. This evidence must be in the form of certificates of insurance. These certificates should detail the duration of the coverage, the coverage limits in effect, the names of the insurance companies providing the coverage, and the parties insured under the policies.
Franchisees are obligated to submit revised certificates to IHG whenever there are changes to their insurance coverage, such as modifications to the policy or a switch in insurance carriers. Additionally, franchisees must provide updated certificates upon the renewal of any expired insurance policies. IHG retains the option to request certified copies of the insurance policies themselves from the franchisee.
If a franchisee fails to secure and maintain the insurance coverages and limits as specified by IHG, IHG has the right, but not the obligation, to obtain the necessary insurance coverage on behalf of the franchisee. In such cases, the franchisee will be responsible for covering all costs incurred by IHG in procuring and maintaining the insurance, ensuring that the hotel remains adequately insured as per IHG's requirements.
During the License Term, the Atwell Suites licensee will comply with all insurance requirements of any lease or mortgage covering the Hotel, and IHG's specifications for insurance as to the amount and type of coverage as may be reasonably specified by IHG from time to time in writing, and will in any event maintain on the Hotel as a minimum, insurance underwritten by a reputable insurer approved by IHG.