Does the insurance policy for a Bevaris Alliance franchise need to include indemnity coverage?
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.
- 13.2 Compliance with insurance policies. The Franchisee shall not breach, or allow any breach of, such insurance policies.
- 13.3 Franchisor's interest. The Franchisor's interest should be noted on the policies of insurance as an additional insured, and which shall state that the Franchisor is to receive notice of any late payment of a premium and at least 30 days' notice of cancellation.
- 13.4 Copies. The Franchisee shall provide the Franchisor with copies of all such policies and renewals.
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to the 2024 Bevaris Alliance Franchise Disclosure Document, franchisees are required to maintain an all-risk insurance policy with a reputable insurance company. The specific amount of coverage is determined at the franchisor's discretion.
The required insurance policy must include several coverage types. These include liability for the franchisee's business, covering products and services delivered to customers, as well as liability for employees and third parties. The policy must also include public liability, workers' compensation, and indemnity coverage.
Additionally, the insurance must cover liability for damage to property, including the premises, equipment, and any vehicles used in the Bevaris Alliance franchisee's business. It should also cover loss of profits and interruption of the franchisee's business. The franchisor retains the right to specify any other coverage deemed necessary. Franchisees must provide copies of all insurance policies and renewals to Bevaris Alliance, ensuring the franchisor's interest is noted on the policies as an additional insured, with notification of any late premium payments or cancellations.