Does Ben Jerrys maintaining its own insurance relieve the operator/catering entity from their obligation to obtain and maintain insurance for off-premises activities and/or mobile vending?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
expense, an insurance policy or policies protecting [the Catering Entity], OPERATOR, and BEN & JERRY'S against any demand or claim with respect to personal injury, death, or property damage, or any loss, liability, or expense whatsoever arising or occurring upon or in connection with providing Off-Premises Activities [and/or Mobile Vending] through the Authorized Warehouse, including comprehensive general liability insurance, property and casualty insurance, statutory workers' compensation insurance, product liability insurance and vehicle insurance. Such policy or policies shall reflect industry standards, shall be written by a responsible carrier or carriers acceptable to BEN & JERRY'S, shall name BEN & JERRY'S and its affiliates as additional insureds, and shall
provide at least the types and minimum amounts of coverage as are specified in the Manual, or as otherwise prescribed by BEN & JERRY'S in writing, as such may be modified by BEN & JERRY'S from time to time.
- 13.6 [OPERATOR's/The Catering Entity's] obligation to obtain and maintain the policy or policies in the amounts specified in the Manual or otherwise in writing shall not be limited in any way by reason of any insurance which may be maintained by BEN & JERRY'S, nor shall [OPERATOR's/the Catering Entity's] performance of that obligation relieve it of liability under the indemnity provisions set forth in Section 20.3 of this Agreement.
- 13.7 [OPERATOR/The Catering Entity] shall deliver to BEN & JERRY'S Certificates of Insurance evidencing the proper types and minimum amounts of coverage. [OPERATOR/The Catering Entity] shall also maintain Certificates of Insurance evidencing the proper types and minimum amounts of coverage for the Off-Premises Activities [and/or Mobile Vending] provided from the Authorized Warehouse. All Certificates shall expressly provide that no less than thirty (30) days' prior written notice shall be given to BEN & JERRY'S in the event of material alteration to or cancellation of the coverages evidenced by such Certificates.
Transfer
Source: Item 23 — RECEIPTS (FDD pages 134–358)
What This Means (2025 FDD)
According to Ben Jerrys's 2025 Franchise Disclosure Document, Ben Jerrys maintaining its own insurance does not relieve the operator or catering entity from their obligation to obtain and maintain their own insurance policies. The operator/catering entity is required to procure and maintain insurance policies protecting themselves and Ben & Jerrys against claims related to personal injury, death, property damage, loss, liability, or expense arising from off-premises activities and/or mobile vending. This includes comprehensive general liability insurance, property and casualty insurance, statutory workers' compensation insurance, product liability insurance, and vehicle insurance.
The insurance policies must meet industry standards and be written by carriers acceptable to Ben & Jerrys. Ben & Jerrys and its affiliates must be named as additional insureds on these policies. The operator/catering entity must provide Ben & Jerrys with certificates of insurance evidencing the required coverage for both general operations and off-premises activities/mobile vending. These certificates must stipulate that Ben & Jerrys will receive at least 30 days' prior written notice in the event of any material alteration or cancellation of the insurance coverage.
This requirement ensures that both the franchisee and Ben & Jerrys are protected from potential liabilities arising from the franchisee's operations, especially those conducted outside the traditional scoop shop setting. The franchisee's obligation to maintain adequate insurance is not waived or reduced by any insurance that Ben & Jerrys may carry. This also means that the franchisee's insurance obligations do not relieve them of liability under the indemnity provisions outlined in the Franchise Agreement.