On what basis must all Baya Bar insurance coverage be?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
h the Americans with Disabilities Act.
Insurance
When you sign the lease for the Shop premises or 90 days after you sign the Franchise Agreement, whichever occurs first, you must obtain the insurance coverage for the Shop that is required by the terms of your lease and applicable law, and that we specify in the Manual or otherwise in writing. Your insurance coverage must be maintained during the term of the Franchise Agreement and must be obtained from a responsible, duly licensed carrier or carriers acceptable to us and having a rating of at least "A-VII" with A.M. Best Company. All insurance must be on an "occurrence" basis. Currently you must maintain the following insurance: (1) "Special" causes of loss coverage forms, including fire and extended coverage, crime, vandalism, and malicious mischief, on all property of the Franchised Business, for full repair and replacement value (subject to a reasonable deductible); (2) Business interruption insurance covering at least 12 months of income; (3) Commercial General Liability insurance, including products liability coverage, and broad form commercial liability coverage, written on an "occurrence" policy form in an amount of not less than $1,000,000 single limit per occurrence and $2,000,000 aggregate limit; (4) Business Automobile Liability insurance including owned, leased, non-owned and hired automobiles coverage in an amount of not less than $1,000,000; (5) Workers Compensation coverage as required by state law; and (6) any insurance required by the terms of your lease, required by law or that we may require in the future.
All insurance policies, except for workers' compensation, must name us, our affiliates and the officers, directors, shareholders, partners, agents, representatives, independent contractors, servants and employees of each of them, as additional named insureds. All insurance policies must include a waiver of subrogation in favor of us and our affiliates, must be primary and non-contributing with any insurance carried by us or our affiliates, and must stipulate th
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 20–24)
What This Means (2024 FDD)
According to Baya Bar's 2024 Franchise Disclosure Document, all insurance coverage must be on an "occurrence" basis. This means that the insurance policy will cover claims arising from incidents that occur during the policy period, regardless of when the claim is actually filed.
Baya Bar requires franchisees to obtain insurance coverage for the Shop when they sign the lease for the Shop premises or 90 days after signing the Franchise Agreement, whichever occurs first. The insurance must be maintained during the term of the Franchise Agreement and must be obtained from a responsible, duly licensed carrier or carriers acceptable to Baya Bar and having a rating of at least "A-VII" with A.M. Best Company.
Currently, Baya Bar requires franchisees to maintain several types of insurance, including: (1) "Special" causes of loss coverage forms, including fire and extended coverage, crime, vandalism, and malicious mischief, on all property of the Franchised Business, for full repair and replacement value; (2) Business interruption insurance covering at least 12 months of income; (3) Commercial General Liability insurance of not less than $1,000,000 single limit per occurrence and $2,000,000 aggregate limit; (4) Business Automobile Liability insurance of not less than $1,000,000; (5) Workers Compensation coverage as required by state law; and (6) any insurance required by the terms of your lease, required by law or that Baya Bar may require in the future. All insurance policies, except for workers' compensation, must name Baya Bar, its affiliates, and their personnel as additional named insureds and include a waiver of subrogation in favor of Baya Bar and its affiliates. Franchisees must provide Baya Bar with a certificate of insurance when they sign the lease or 90 days after signing the Franchise Agreement, and within ten days of each policy's renewal.