What is a Bevaris Alliance franchisee prohibited from doing with their insurance policies?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
- 13.2 Compliance with insurance policies. The Franchisee shall not breach, or allow any breach of, such insurance policies.
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to Bevaris Alliance's 2024 Franchise Disclosure Document, franchisees are prohibited from breaching their insurance policies. This means a franchisee must adhere to all terms and conditions of their insurance coverage, ensuring they remain in compliance.
Maintaining compliance with insurance policies is crucial for a Bevaris Alliance franchisee because a breach could lead to a denial of coverage in the event of a claim. This could leave the franchisee financially responsible for liabilities, damages, or losses that would otherwise be covered by insurance.
Furthermore, the franchisor, Bevaris Alliance, requires that its interest be noted on the insurance policies as an additional insured. This ensures that Bevaris Alliance receives notice of any late payment of a premium and at least 30 days' notice of cancellation, allowing them to take steps to protect their own interests and potentially prevent a lapse in coverage. The franchisee is also required to provide Bevaris Alliance with copies of all insurance policies and renewals as evidence of coverage.