Is Boulder Designs required to be named as an additional insured on all insurance policies, and if not, what is the exception?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
We must be named as additional insured on all of these policies, except for worker's compensation insurance, and provide us with the additional insured endorsement for each policy. All insurance policies must include a waiver of subrogation in favor of us and our affiliates, and each company's officers, directors, shareholders, partners, members, agents, representatives, independent contractors, servants, and employees, and must include a 30-day notice of cancellation directed to both you and to us or the person we designate.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 20–22)
What This Means (2025 FDD)
According to Boulder Designs's 2025 Franchise Disclosure Document, franchisees are generally required to name Boulder Designs as an additional insured on most insurance policies. The document specifies several types of insurance coverage that franchisees must obtain, including "all risk" property insurance, general commercial liability insurance (not less than $1,000,000 per occurrence with a $2,000,000 general aggregate), comprehensive general liability insurance (not less than $30,000 per occurrences with a $30,000 general aggregate), workers' compensation insurance, vehicle replacement insurance (typically around $30,000), and automobile liability coverage (not less than $1,000,000 combined single limit). Boulder Designs also reserves the right to require cybersecurity insurance policies and to be named as an additional insured on those policies.
The key exception to the additional insured requirement is worker's compensation insurance. The FDD explicitly states that Boulder Designs does not need to be named as an additional insured on worker's compensation policies. For all other required policies, franchisees must provide Boulder Designs with the additional insured endorsement.
All insurance policies must include a waiver of subrogation in favor of Boulder Designs and its affiliates, officers, directors, shareholders, partners, members, agents, representatives, independent contractors, servants, and employees. Additionally, all policies must include a 30-day notice of cancellation directed to both the franchisee and Boulder Designs or its designee. Boulder Designs retains the right to modify the minimum coverage requirements and require different or additional kinds of insurance to reflect changes in circumstances such as inflation or changes in liability standards. Franchisees are advised to consult with their own insurance advisors to determine appropriate and sufficient coverage for their business and assets.