Who must be named as additional insureds on the Bor Restoration franchisee's insurance policies?
Bor_Restoration Franchise · 2024 FDDAnswer from 2024 FDD Document
- a. Before you open, you will purchase and will then maintain in full force and effect during each Term of this Franchise Agreement an insurance policy or policies protecting you, us, and the officers, directors, partners, members, and employees of both you and us against any loss, liability, personal injury, death, property damage or expense whatsoever arising or occurring upon or in connection with the operation of the Business. We and our officers, directors, members, partners, and employees will be named as additional insureds on all such policies using the latest version of ISO endorsement CG 2010 or the combination of the latest version of ISO endorsements CG 20 29 04 13, CG 2033 and CG 2037 (or their combined equivalent that affords us the broadest additional-insured coverage) or such other endorsements that provide the additional insureds the most inclusive protection and coverage. The coverage afforded to the additional insureds must be written on a primary basis and will not require or contemplate contribution by any other policy or policies obtained by or available to an additional insured and must expressly provide that any interest of the additional insureds will not be affected by your breach of any policy provisions for which such certificates evidence coverage.
- b. At the time you first obtain insurance, and then within 30 days of each renewal, you will deliver to us the actual policy or policies of insurance or endorsements issued by the insurer (and not the broker), showing the proper coverage with limits not less than those required hereunder.
Source: Item 23 — Receipts (FDD pages 40–202)
What This Means (2024 FDD)
According to Bor Restoration's 2024 Franchise Disclosure Document, franchisees are required to maintain insurance policies that protect themselves, Bor Restoration, and the officers, directors, partners, members, and employees of both the franchisee and Bor Restoration. These parties must be named as additional insureds on all insurance policies.
The specific ISO endorsements required are the latest version of ISO endorsement CG 2010 or the combination of the latest version of ISO endorsements CG 20 29 04 13, CG 2033 and CG 2037, or their combined equivalent that affords the broadest additional-insured coverage. The endorsements must provide the additional insureds with the most inclusive protection and coverage. The coverage afforded to the additional insureds must be written on a primary basis and will not require or contemplate contribution by any other policy or policies obtained by or available to an additional insured. The coverage must expressly provide that any interest of the additional insureds will not be affected by the franchisee's breach of any policy provisions for which such certificates evidence coverage.
This requirement ensures that Bor Restoration and its personnel are protected from potential liabilities arising from the franchisee's business operations. It is a common practice in franchising to include the franchisor as an additional insured on the franchisee's insurance policies to mitigate risk and ensure comprehensive coverage. Franchisees must provide proof of this insurance coverage to Bor Restoration, including the actual policies or endorsements, within 30 days of each renewal.