What is the Canopy Lawn Care franchisee's obligation regarding the maintenance of 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 as detailed in the Operations Manual, which may be adjusted periodically. The franchisee bears the expense of these insurance policies.
The required insurance includes commercial general liability with an annual aggregate limit of at least $2,000,000 and a per occurrence limit of at least $1,000,000, including products liability, completed operations, and herbicide/pesticide applicators endorsement. The coverage must be on an "occurrence" basis, with deductibles also on a "per occurrence" basis. Additionally, franchisees must maintain all-risk or special property insurance covering real and personal property and equipment on a replacement cost basis, including business interruption and extra expense insurance.
Further insurance requirements include commercial automobile liability coverage for owned, leased, hired, or borrowed automobiles, including auto pollution, with a minimum liability limit of $1,000,000 per occurrence for bodily injury and property damage. Franchisees must also secure uninsured and underinsured motorist protection, medical payments, and statutory no-fault coverage, subject to state minimums. Canopy Lawn Care and its related parties must be named as additional insured. Workers compensation and employer's liability insurance are required, with no less than $500,000 coverage per accident, per policy, and per employee. Lastly, contractors professional liability insurance, including pollution or voluntary property damage or expanded property damage, must be maintained at no less than $250,000 or the state minimum.
Franchisees 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 equivalent form). Insurers must provide Canopy Lawn Care with a 30-day written notice of cancellation or non-renewal for all required coverage types. This comprehensive insurance requirement ensures that both the franchisee and Canopy Lawn Care are protected against various liabilities and risks associated with operating the business.