Is workers compensation coverage required in the Bevaris Alliance Franchisee's insurance policy?
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.
- 13.5 Premiums. The Franchisee shall promptly pay all premiums for such policies and immediately provide the Franchisor with evidence of payment of premiums.
- 13.6 Failure to insure. If the Franchisee fails to take out and maintain such policies, the Franchisor may do so and the Franchisee shall reimburse the Franchisor for all costs and expenses incurred in doing so.
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to Bevaris Alliance's 2024 Franchise Disclosure Document, franchisees are required to maintain an all-risk insurance policy that includes workers compensation coverage. This requirement is part of a broader set of compulsory insurance coverages that Bevaris Alliance mandates for its franchisees. The specific amount of coverage is determined at the franchisor's discretion.
In addition to workers compensation, the required insurance policy must include liability coverage for the franchisee's business, including products and services, as well as liability for employees and third parties. Public liability, indemnity coverage, and liability for damage to property, including the premises, equipment, and vehicles used in the business, are also mandated. Furthermore, the policy must cover loss of profits and interruption of the franchisee's business.
Bevaris Alliance also requires that its interest be noted on the insurance policies as an additional insured. This ensures that Bevaris Alliance receives notification of any late premium payments or potential policy cancellations, with at least 30 days' notice. Franchisees must provide Bevaris Alliance with copies of all insurance policies and renewals to demonstrate compliance.
If a franchisee fails to maintain the required insurance policies, Bevaris Alliance has the right to obtain the necessary coverage and charge the franchisee for all associated costs and expenses. This underscores the importance of adhering to the insurance requirements outlined in the Franchise Disclosure Document to avoid potential financial repercussions and maintain compliance with the franchise agreement.