What insurance coverage must a general contractor maintain for any construction, renovation, refurbishment or remodeling of a Burros Fries site?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
hundred and eighty (180) days or longer as may specify; and statutory workers' compensation insurance with limits of greater than $100,000 or the minimum limits required by law.
For any construction, renovation, refurbishment or remodeling of the site, Franchisee must require that the general contractor maintain, with an approved insurer, commercial general liability insurance (with comprehensive automobile liability coverage for both owned and non-owned vehicles, builders risk, product liability and independent contractor's coverage) with limits of no less than $1,000,000 per claim, naming Franchisee and us as additional insureds, as their interests may appear, together with workers' compensation and employer's liability insurance as re
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to Burros Fries's 2024 Franchise Disclosure Document, a franchisee must ensure that any general contractor hired for construction, renovation, refurbishment, or remodeling of a Burros Fries site maintains specific insurance coverage. This coverage must be with an approved insurer and include commercial general liability insurance, with comprehensive automobile liability coverage for owned and non-owned vehicles, builders risk, product liability, and independent contractor's coverage. The insurance policy must have limits of no less than $1,000,000 per claim.
Furthermore, the franchisee and Burros Fries must be named as additional insureds on the contractor's insurance policies, protecting them from potential liabilities arising from the construction work. The contractor must also maintain workers' compensation and employer's liability insurance as required by law and the lease agreement.
It is the franchisee's responsibility to obtain certificates of insurance from the contractor before any construction work begins, ensuring that the required coverage is in place. This requirement protects Burros Fries and its franchisees from potential financial losses due to accidents, injuries, or property damage during the construction or remodeling process.