Does Basecamp Fitness warrant that the required insurance will provide adequate coverage?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
You assume all risks in connection with the adequacy of any insurance or self-insurance program and waive any claim against us for any liability costs or expenses arising out of any uninsured claim, in full or in part, of any nature whatsoever.
Your obligation to obtain and maintain these insurance policies in the minimum amounts we require is not limited in any way by reason of any insurance that we may maintain, nor does your procurement of required insurance relieve you of liability under the indemnity obligations described in Section 11.B.
Your insurance procurement obligations under this Section are separate and independent of your indemnity obligations.
We do not represent or warrant that any insurance that you are required to purchase will provide adequate coverage for you.
The requirements of insurance specified in this Agreement are for our protection.
You should consult with your insurance agents, brokers, attorney or other insurance advisors to determine the level of insurance protection you need in addition to the coverages and limits we require.
If you do not obtain or maintain insurance coverage that meets our requirements and we obtain it for you, you must pay us our then current insurance handling fee plus the cost of the premiums we pay for the insurance.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, Basecamp Fitness does not guarantee that the insurance coverage you are required to purchase will be adequate for your needs. As a franchisee, you assume all risks associated with the adequacy of your insurance or self-insurance programs. You also waive any claims against Basecamp Fitness for any uncovered liabilities, costs, or expenses resulting from uninsured claims.
Your obligation to maintain the minimum required insurance coverage is not affected by any insurance that Basecamp Fitness may carry. Furthermore, securing the required insurance does not relieve you of your responsibilities under the indemnity obligations detailed in Section 11.B of the Franchise Agreement. These insurance procurement obligations are separate from your indemnity obligations.
Basecamp Fitness states that the insurance requirements outlined in the agreement are primarily for their protection. Therefore, Basecamp Fitness recommends consulting with insurance agents, brokers, attorneys, or other insurance advisors to determine the appropriate level of insurance coverage needed beyond the minimum requirements set by the company. If you fail to obtain and maintain insurance coverage that meets Basecamp Fitness's requirements, and they obtain it for you, you will be responsible for their insurance handling fee and the cost of the premiums.