Can Bevaris Alliance require additional insurance coverage beyond what is initially specified?
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.
- 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 the 2024 Bevaris Alliance Franchise Disclosure Document, Bevaris Alliance has the authority to mandate specific insurance coverage for franchisees. The franchisee is required to secure and maintain an all-risk insurance policy with a reputable insurance company, with the coverage amount determined at Bevaris Alliance's discretion.
The required insurance policy must cover various aspects of the franchisee's business, including liability for products and services, employees and third parties, public liability, workers' compensation, indemnity coverage, property damage, and business interruption. Furthermore, the policy must include any other coverage that Bevaris Alliance may specify at its discretion.
This means that Bevaris Alliance franchisees must be prepared to obtain and maintain insurance coverage that meets not only the initial requirements but also any additional requirements that Bevaris Alliance may impose during the franchise term. Failure to comply with these insurance requirements could result in Bevaris Alliance securing the necessary coverage and charging the franchisee for all associated costs and expenses. 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.