What is the primary and non-contributing requirement for Bombs Away franchisee's insurance policies?

According to Bombs Away's 2024 Franchise Disclosure Document, franchisee's insurance policies, with the exception of Workers Compensation, must be primary and non-contributing with any insurance carried by Bombs Away Franchising or its affiliates. This means that in the event of a claim, the franchisee's insurance policy must be the first one to pay out, and Bombs Away's insurance will not contribute to the payment.

This requirement is fairly standard in franchising, as it protects the franchisor from having to use its own insurance to cover incidents primarily related to the franchisee's operations. It ensures that the franchisee bears the initial responsibility for any liabilities arising from their business activities.

Prospective Bombs Away franchisees should carefully review their insurance coverage to ensure compliance with this requirement. They should also understand the potential financial implications of being the primary insurer in the event of a claim. It is advisable to consult with an insurance professional to obtain appropriate coverage that meets Bombs Away's requirements and adequately protects the franchisee's business.