Does a Bumble Roofing franchisee's insurance procurement relieve them of liability under indemnity obligations?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
- (e) Franchisee's obligation to obtain and maintain insurance coverage in the amounts required by Franchisor shall not be limited in any way by reason of any insurance that Franchisor may maintain, nor does Franchisee's procurement of required insurance relieve Franchisee of liability under the indemnity obligations described in Section 12.2.
Franchisee's insurance procurement obligations under this Section are separate and independent of Franchisee's indemnity obligations.
- (f) Franchisor does not represent or warrant that any insurance that Franchisee is required to purchase will provide adequate coverage or protection for Franchisee.
The requirements of insurance specified in this Agreement or the Manual are strictly for Franchisor's protection.
Franchisee should consult with its own insurance agents, brokers, attorneys and other insurance professionals to determine the level of insurance protection it needs and desires, in addition to the coverage and limits required by Franchisor.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, a franchisee's obligation to obtain and maintain insurance coverage does not relieve them of liability under indemnity obligations. This means that even if a Bumble Roofing franchisee has the required insurance, they are still responsible for fulfilling their indemnity obligations as described in Section 12.2 of the franchise agreement.
Bumble Roofing emphasizes that the franchisee's insurance procurement obligations are separate and independent from their indemnity obligations. Therefore, having insurance does not protect the franchisee from potential liabilities they may incur under the indemnity provisions of the agreement.
This distinction is important for prospective franchisees to understand, as they may be responsible for costs and damages even if they have insurance coverage. Bumble Roofing also states that it does not represent or warrant that any insurance that Franchisee is required to purchase will provide adequate coverage or protection for Franchisee. Franchisees are encouraged to consult with their own insurance professionals to determine the level of insurance protection they need and desire, in addition to the coverage and limits required by Franchisor. The requirements of insurance specified in this Agreement or the Manual are strictly for Franchisor's protection.