Who must Brightstar Care franchisees name as additional insureds on their Professional Liability, General Liability, and Employment Practices Liability insurance policies?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
You must at your own expense procure on or before the Opening Date, and then maintain in full force and effect throughout the Initial Term, the lines of liability insurance enumerated in the Operations Manual in the minimum amounts we periodically require. All Professional Liability, General Liability, and Employment Practices Liability insurance policies must name, as additional insureds, BrightStar Group Holdings, Inc., us and our subsidiaries, our officers, directors, and employees, and any other person or entity we designate in the future. You bear all related costs.
Source: Item 22 — CONTRACTS (FDD pages 117–118)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, franchisees are required to secure and maintain specific liability insurance policies. These include Professional Liability, General Liability, and Employment Practices Liability insurance.
Brightstar Care franchisees must name certain entities as additional insureds on these policies. Specifically, the additional insureds must include BrightStar Group Holdings, Inc., Brightstar Care itself, its subsidiaries, officers, directors, and employees. Furthermore, any other person or entity that Brightstar Care designates in the future must also be named as an additional insured.
The franchisee is responsible for covering all costs associated with obtaining and maintaining these insurance policies. This requirement ensures that Brightstar Care and its related parties are protected from potential liabilities arising from the franchisee's operations.
This requirement is typical in franchising, as it protects the franchisor from liabilities related to the franchisee's business. Franchisees should factor in these insurance costs when evaluating the financial feasibility of investing in a Brightstar Care franchise.