For a Best Western Conversion System Hotel (75-room), what is the estimated range for insurance?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
You must maintain the minimum levels and types of insurance specified in the Regulatory Documents at your expense.
This insurance must be with insurers having minimum ratings we specify; name as additional insureds the parties we specify in the Regulatory Documents; and carry the endorsements and notice requirements we specify in the Regulatory Documents.
Insurance premiums vary widely by reason of location, size of hotel and type of coverage purchased.
The amounts disclosed in the above tables represent the cost of the annual premium for three months.
Source: Item 7 — Estimated Initial Investment (FDD pages 37–61)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, franchisees must maintain minimum levels and types of insurance as specified in the Regulatory Documents. The insurance must be with insurers having minimum ratings that Best Western specifies, and the insurance policy must name as additional insureds the parties Best Western specifies in the Regulatory Documents, and carry the endorsements and notice requirements Best Western specifies in the Regulatory Documents.
The FDD indicates that insurance premiums can vary significantly based on location, hotel size, and the type of coverage purchased. The estimated initial investment table includes the cost of the annual premium for three months.
To determine the estimated range for insurance for a Best Western Conversion System Hotel with 75 rooms, a prospective franchisee should refer to the table titled "CONVERSION – BEST WESTERN SYSTEM HOTEL (75-ROOM)" in Item 7 of the FDD. This table provides an estimate of the initial investment, including insurance costs, for this specific type of Best Western hotel. However, the actual insurance costs may vary based on the factors mentioned above, so it is important to obtain accurate quotes based on the specific circumstances of the hotel.