What are the specific obligations of a Bonchon franchisee regarding the maintenance of insurance coverage (Item 9), and how does the franchisor ensure compliance with these obligations?

[Item 23: RECEIPTS]

9. INSURANCE

9.01 Your Required Insurance Coverage

• A. Within ten days following our execution of this Agreement, and thereafter at all times throughout the term of this Agreement, you agree to purchase at your own expense, and maintain in effect at all times, the following categories of insurance coverage in forms and through insurance companies satisfactory to us:
  • 1. Broad form comprehensive general liability coverage, and broad form contractual liability coverage of at least $2,000,000 aggregate and at least $1,000,000 per occurrence. This insurance may not have a deductible or selfinsured retention of over $5,000.
  • 1. Special cause of loss coverage forms (sometimes called "All Risk Coverage") on your Bonchon Restaurant and all fixtures, equipment, supplies and other property used in the operation of the Restaurant, for full repair and replacement value of the machinery, equipment and improvements, including full coverage for loss of income resulting from damage to the Restaurant.
  • 1. Dram Shop Liquor Liability Insurance with limits not less than $1,000,000 per occurrence and in the aggregate.
  • 1. Business interruption insurance in sufficient amounts to cover your Bonchon Restaurant rental expenses, maintenance of competent personnel and other fixed expenses (including payment of Continuing Royalties to us) for a minimum of 12 months loss of income.
  • 1. If any vehicle is operated in connection with the Business, automobile liability insurance with a combined single limit of $1,000,000 for any owned, hired, or non-owned automobile used in your business.
  • 1. Workers Compensation Insurance providing Statutory Benefits, as required by applicable state law, and Employer's Liability Insurance: Bodily Injury by Accident $1,000,000 Each Accident; Bodily Injury by Disease $1,000,000

Policy Limit; Bodily Injury by Disease $1,000,000 Each Employee. The Workers Compensation policy coverage shall include coverage for all states in which operations are conducted.

• 1. In connection with the construction, refurbishment, renovation or remodeling of your franchised Bonchon Restaurant, builders' and/or contractor's insurance (as applicable) and performance and completion bonds in forms and amounts acceptable to us.
• 1. Insurance coverage of such types, nature and scope sufficient to satisfy your indemnification obligations under this Agreement (including, without limitation, insurance coverage to indemnify us from any claims alleging your violation of federal, state or local labor and/or wage and hour laws, rules or regulations).
• 1. Umbrella liability coverage in no event less than $2,000,000.
• 1. Employment practices liability insurance with a limit of not less than $250,000 (claims made policy form is acceptable).
• 1. All other insurance required under applicable state law or local authority.

For the avoidance of doubt, you must secure all necessary insurance coverage, including (but not limited to), worker's compensation, disability and general liability, prior to and in order secure coverage for your actions and omissions during the Initial Training Program or Partner Training Program (as applicable). These coverage requirements are subject to change. If you are operating a Remote Kitchen Restaurant, you may be required to procure and maintain additional insurance coverage pursuant to the terms of the lease for your Restaurant Location. You agree to procure and maintain such additional insurance coverage in accordance with the terms of the lease for your Restaurant Location.