Who determines the amount of coverage required for the all-risk insurance policy for a Bevaris Alliance franchise?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
- 13.1 Compulsory cover. The Franchisee shall take out and maintain an all-risk insurance policy or policies with a reputable insurance company (or companies) with such amount of coverage as the Franchisor may, in its absolute discretion, specify. Such policy (or policies) shall include those in the Manual and the following:
- (a) Liability for Franchisee's Business including Products and Services delivered by Franchisee to Customers.
- (b) liability for employees and third parties;
- (c) public liability;
- (d) workers compensation;
- (e) indemnity coverage;
- (f) liability for damage to property (including to the Premises, equipment and any vehicles used in the Franchisee's Business);
- (g) loss of profits and interruption of the Franchisee's Business; and
- (h) any other coverage which the Franchisor may, in its absolute discretion, specify.
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to Bevaris Alliance's 2024 Franchise Disclosure Document, the franchisor has the authority to specify the amount of coverage required for the all-risk insurance policy that franchisees must maintain. Specifically, Bevaris Alliance, in its absolute discretion, determines the coverage amount franchisees must secure with a reputable insurance company.
This requirement ensures that all Bevaris Alliance franchise locations have sufficient insurance to cover potential risks and liabilities. The policy must include coverage for the franchisee's business, including products and services, liability for employees and third parties, public liability, workers' compensation, indemnity coverage, damage to property, loss of profits, and any other coverage the franchisor deems necessary.
As an additional safeguard, Bevaris Alliance requires that its interest be noted on the insurance policies as an additional insured. This ensures that the franchisor receives notifications of any late premium payments or policy cancellations, providing them with an opportunity to address any lapses in coverage. The franchisee is also responsible for providing Bevaris Alliance with copies of all insurance policies and renewals to verify compliance. If a franchisee fails to maintain the required insurance, Bevaris Alliance has the right to obtain the necessary coverage and charge the franchisee for all associated costs and expenses.