Under what conditions can IHG procure insurance at the Atwell Suites licensee's cost?

According to the 2025 Atwell Suites Franchise Disclosure Document, IHG (InterContinental Hotels Group) has the right to procure insurance at the licensee's cost if the licensee fails to procure or maintain the required insurance coverages and limits. This includes any costs incurred by IHG for the procurement and maintenance of such insurance.

This provision means that Atwell Suites franchisees must ensure they maintain the insurance coverage as specified in the license agreement. Failure to do so allows IHG to step in and obtain the necessary insurance, but the franchisee will be responsible for covering all associated expenses. This protects IHG from potential liabilities arising from underinsured or uninsured hotels operating under the Atwell Suites brand.

For a prospective Atwell Suites franchisee, this underscores the importance of understanding and adhering to the insurance requirements outlined in the franchise agreement. It also highlights the need to maintain open communication with IHG regarding insurance coverage to avoid any lapses or discrepancies that could lead to IHG procuring insurance on the franchisee's behalf and at their expense. Franchisees should clarify the specific insurance types, coverage amounts, and approved insurers to ensure compliance and prevent additional costs.