What waiver must Bombs Away franchisee's insurance policies include?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
- (b) Franchisee's policies (other than Workers Compensation) must (1) list Bombs Away Franchising and its affiliates as an additional insured, (2) include a waiver of subrogation in favor of Bombs Away Franchising and its affiliates, (3) be primary and non-contributing with any insurance carried by Bombs Away Franchising or its affiliates, and (4) stipulate that Bombs Away Franchising shall receive 30 days' prior written notice of cancellation.
Source: Item 22 — CONTRACTS (FDD pages 35–36)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, franchisees are required to maintain certain insurance policies. These policies, with the exception of Workers Compensation, must include specific provisions to protect Bombs Away Franchising and its affiliates.
Specifically, the franchisee's insurance policies must list Bombs Away Franchising and its affiliates as additional insured parties. This means that Bombs Away is covered under the franchisee's insurance policy for certain liabilities. The policies must also include a waiver of subrogation in favor of Bombs Away Franchising and its affiliates, preventing the insurance company from pursuing Bombs Away to recover claim payments made to the franchisee.
Furthermore, the franchisee's insurance must be primary and non-contributing with any insurance carried by Bombs Away, meaning the franchisee's policy pays out first in the event of a claim. Finally, the insurance policy must stipulate that Bombs Away will receive 30 days' prior written notice of cancellation, giving Bombs Away time to ensure continuous coverage.