Who must Budget licensees name as additional insureds on their insurance policies?

According to Budget's 2025 Franchise Disclosure Document, Budget licensees are required to name Budget and its affiliates as additional insureds on their insurance policies. This requirement is part of the insurance obligations that licensees must adhere to throughout the term of their agreement with Budget. The insurance coverage must be maintained with carriers approved by Budget, and licensees must provide Budget with a current certificate of insurance annually.

This requirement ensures that Budget and its affiliates are protected from potential liabilities arising from the licensee's operations. By being named as additional insureds, Budget can directly benefit from the licensee's insurance coverage in the event of a claim. Additionally, the insurer must waive any subrogation rights against Budget, preventing the insurance company from pursuing claims against Budget for any payments made under the licensee's policy.

Budget also retains the right to increase the required insurance amounts or types to reflect changes in liability standards, inflation, or the licensee's claims history. This allows Budget to adapt the insurance requirements to address evolving risks and ensure adequate coverage is maintained. Furthermore, Budget may receive fees or commissions for endorsing specific insurance carriers or programs for supplemental liability coverage sold to rental customers. This practice is not uncommon in franchising, as franchisors often negotiate preferred rates or arrangements with insurance providers to benefit both the franchisor and franchisees while ensuring compliance with brand standards and risk management protocols.