What specific endorsements or amendments are required on a Bumble Roofing franchisee's insurance policies regarding primary coverage, subrogation, and notice of cancellation?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
- 12.1 Franchisee must comply with the following insurance requirements:
- (a) Franchisee shall, upon commencement of the Initial Term, purchase and at all times maintain in full force and effect during the Initial Term and any Interim Period, insurance policies, in such amounts and on such terms as prescribed below or in the Manual, issued by one or more insurance companies acceptable to Franchisor.
- (b) All insurance policies shall name Franchisor and its parent, Empower Brands, LLC, their affiliates and such other parties as Franchisor may designate, as additional insureds. Coverage for the additional insureds shall not be limited to claims of vicarious liability. In addition, the Franchisee's insurers shall endorse or otherwise amend the policies such that their policies: (a) are primary and non-contributory; (b) waive any right of subrogation as respects the additional insureds; and (c) provide the additional insureds 30 days' advance written notice of cancellation or other material change in coverage.
- (c) Franchisee shall provide Franchisor with original or duplicate copies of all insurance policies, including endorsements, or other proof of insurance acceptable to Franchisor evidencing coverage required by this Section, together with proof of payment within 10 days of issuance thereof. Franchisee shall also furnish Franchisor with all proof of insurance coverage required by this Section, including endorsements, within 10 days after any of the following events: (a) all policy renewals, but not less often than annually, and (b) all instances of any change to, addition to, or replacement of any insurance. The policies and endorsements for each insurance policy are to be signed by a person authorized by that insurer to bind coverage on its behalf. All proof of insurance is subject to approval by Franchisor. Franchisor reserves the right to require complete, certified copies of all required insurance policies at any time in Franchisor's sole discretion.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, franchisees are required to maintain specific insurance coverage throughout the term of their agreement. These insurance policies must name Bumble Roofing, its parent company Empower Brands, LLC, their affiliates, and any other parties designated by Bumble Roofing as additional insureds. The coverage for these additional insureds should not be limited to claims of vicarious liability.
To ensure adequate protection for Bumble Roofing, the franchisee's insurance policies must be endorsed or amended to include specific provisions. First, the policies must be primary and non-contributory, meaning they will be the first source of coverage in case of a claim. Second, the insurers must waive any right of subrogation, preventing them from pursuing claims against the additional insureds (Bumble Roofing and related entities). Finally, the policies must provide the additional insureds with 30 days' advance written notice of cancellation or any other material change in coverage.
Bumble Roofing requires franchisees to provide proof of their insurance coverage. Franchisees must supply original or duplicate copies of all insurance policies, including endorsements, or other proof of insurance acceptable to Bumble Roofing, along with proof of payment within 10 days of issuance. Furthermore, franchisees must furnish Bumble Roofing with updated proof of insurance, including endorsements, within 10 days after policy renewals (at least annually) or any changes, additions, or replacements to the insurance coverage. All proof of insurance is subject to approval by Bumble Roofing, and Bumble Roofing reserves the right to request complete, certified copies of all required insurance policies at any time.