What is the minimum required Commercial General Liability coverage, including General/Excess/Umbrella coverage, that Best Western franchisees must maintain?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
s' compensation insurance, each in the amount set forth in the Regulatory Documents, currently as follows:
- Commercial General Liability: $6M General/Excess/Umbrella. We strongly recommend that assault and battery, abuse and molestation, and human trafficking liability coverage not be limited or excluded. Exposure to carbon monoxide may not be excluded and may not be limited to amounts less than the $6M.
- Automobile Liability: $1M coverage for owned, hired and non-owned automobiles.
- Cyber Security Liability: $1M
- Worker's Compensation: As required by law.
All required insurance must be with insurers having the minimum ratings we specify, name as additional insureds the parties we specify in the Regulatory Documents (to include us), and carry the endorsements and notice requirements we specify in the Regulatory Documents. Upon request, you shall provide us with certificates and such other documents that we request evidencing t
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 61–64)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, franchisees must maintain certain insurance coverages, including Commercial General Liability. The minimum required Commercial General Liability coverage is $6 million, which includes General, Excess, and Umbrella coverage. Best Western also strongly recommends that the policy not limit or exclude assault and battery, abuse and molestation, and human trafficking liability coverage. Additionally, exposure to carbon monoxide may not be excluded and may not be limited to amounts less than the $6 million.
In addition to Commercial General Liability coverage, Best Western franchisees must also maintain Automobile Liability coverage of $1 million for owned, hired, and non-owned automobiles, Cyber Security Liability coverage of $1 million, and Worker's Compensation coverage as required by law. All required insurance must be with insurers having the minimum ratings specified by Best Western. The insurance policies must name Best Western and other specified parties as additional insureds and carry the endorsements and notice requirements detailed in the Regulatory Documents.
Prospective franchisees should carefully review the Regulatory Documents to understand the specific requirements for insurance coverage, including the minimum ratings for insurers and the necessary endorsements and notice requirements. Franchisees are responsible for obtaining and maintaining the required insurance coverage at their own expense and must provide Best Western with certificates and other documents upon request to prove compliance with the insurance requirements.