Is public liability coverage required in the Bevaris Alliance Franchisee's insurance policy?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
changes to contractual arrangements with service providers or registrations with regulatory authorities as the Franchisor may require, including at the Franchisor's discretion terminating the arrangements or transferring the right to use the Communication Address to the Franchisor.
13. Insurance
- 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 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 by Bevaris Alliance at its discretion.
This mandatory insurance policy must include several coverage types. Among these are liability for the franchisee's business, covering products and services delivered to customers, as well as liability for employees and third parties.
Specifically, the policy must include public liability coverage. It must also cover workers' compensation, indemnity, damage to property (including the premises, equipment, and vehicles used in the business), and loss of profits and business interruption. Bevaris Alliance retains the right to specify any other coverage deemed necessary. Franchisees must also ensure that Bevaris Alliance's interest is noted on the insurance policies as an additional insured, with the stipulation that Bevaris Alliance receives notice of any late premium payments or policy cancellations at least 30 days in advance.