What are the requirements for the insurance policies (other than Workers Compensation) regarding primary and non-contributing coverage for a Bombs Away franchise?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
Your policies (other than Workers Compensation) must list us and our affiliates as an additional insured, must include a waiver of subrogation in favor of us and our affiliates, must be primary and non-contributing with any insurance carried by us or our affiliates, and must stipulate that we receive 30 days' prior written notice of cancellation.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 15–17)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, franchisees are required to maintain specific insurance coverage, and policies other than Workers Compensation must adhere to particular conditions. These policies must list Bombs Away and its affiliates as additional insured parties.
Furthermore, these policies must include a waiver of subrogation in favor of Bombs Away and its affiliates, meaning the insurance company cannot attempt to recover claim payments from Bombs Away. The franchisee's insurance coverage must be primary and non-contributing with any insurance carried by Bombs Away or its affiliates, indicating that the franchisee's policy will be the first one used in the event of a claim.
Finally, the insurance policies must stipulate that Bombs Away receives 30 days' prior written notice of cancellation, allowing Bombs Away time to ensure continuous coverage is maintained by the franchisee. These requirements ensure that Bombs Away is protected from potential liabilities arising from the franchisee's operations and has adequate notice to address any lapses in coverage.