Is a Canopy Lawn Care franchisee required to purchase and maintain insurance?
Canopy_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
d assist you with this compliance.
You are also required to purchase and maintain the insurance that we describe in the Operations Manual which may be adjusted periodically. Currently, you must procure and maintain, at your own expense: (a) commercial general liability including products liability and completed operations including herbicide/pesticide applicators endorsement. Annual aggregate limit of at least $2,000,000, and per occurrence limit of at least $1,000,000. Coverage must be on an "occurrence" basis. Deductibles (if any) on a "per occurrence" basis; (b) all risk or special property insurance covering all real and personal property and equipment on replacement cost basis including business interruption and extra expense insurance; (c) commercial automobile liability coverage for any owned, leased, hired or borrowed automobile, including auto pollution, with a minimum limit of liability of $1,000,000 per occurrence. Bodily injury and property damage limits should be no less than $1,000,000 for any one occurrence; (d) uninsured and underinsured motorist protection, medical payments, and statutory no-fault coverage subject to the licensee's state minimum must also be purchased; (e) Canopy Franchise Corporation and its affiliates, and their partners, officers, subsidiaries, affiliates, shareholders, directors, regional directors, agents, and employees named as additional insured; (f) workers compensation, employer's liability of no less than $500,000 per accident, $500,000 per policy, and $500,000 per employee; and (f) contractors professional liability including pollution or voluntary property damage or expanded property damage no less than $250,000 or the state minimum (or an endorsement form with comparable wording stating endorsement covers damage to what you are working on with no workmanship exclusion). You must also procure and maintain all other insurance required by state or federal law, including unemployment insurance. The additional insured coverage must be provided on an Additional Insured Grantor of Franchise Endorsement form CG2029 (or an endorsement form with comparable wording acceptable by us). We must be given a 30-day written notice of cancellation or notice of non-renewal by all insurers providing coverage for those types of cov
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 26–29)
What This Means (2025 FDD)
According to Canopy Lawn Care's 2025 Franchise Disclosure Document, franchisees are required to purchase and maintain specific insurance coverage. The types of insurance and their minimum coverage amounts are detailed in the Operations Manual, which Canopy Lawn Care can adjust periodically.
Specifically, franchisees must obtain and maintain at their own expense: commercial general liability insurance with annual aggregate limit of at least $2,000,000 and per occurrence limit of at least $1,000,000; all risk or special property insurance; commercial automobile liability coverage with a minimum limit of liability of $1,000,000 per occurrence; uninsured and underinsured motorist protection; workers compensation with employer's liability of no less than $500,000 per accident, $500,000 per policy, and $500,000 per employee; and contractors professional liability including pollution or voluntary property damage or expanded property damage no less than $250,000 or the state minimum.
Additionally, Canopy Franchise Corporation and its affiliates must be named as additional insured on the policies. Franchisees must also procure and maintain all other insurance required by state or federal law, including unemployment insurance. Furthermore, Canopy Lawn Care requires a 30-day written notice of cancellation or non-renewal from all insurers. This ensures Canopy Lawn Care is aware of any changes in coverage that could affect the franchisee's ability to operate.