Is the insurance coverage required for Canopy Lawn Care considered 'primary coverage'?
Canopy_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
Lessee agrees that each required policy of insurance will by appropriate endorsement or otherwise name Lessor and any other person or entity designated by Lessor as additional insureds and loss payees, as their respective interests may appear. Further, each such insurance policy must provide the following: (i) that the same may not be cancelled, changed or modi ed until after the insurer has given to Lessor, Servicer and any other person or entity designated by Lessor at least thirty (30) days prior written notice of such proposed cancellation, change or modi cation, (ii) that no act or default of Lessee or any other person or entity shall affect the right of Lessor, Servicer, any other agent of Lessor or any of their respective successors or assigns to recover under such policy or policies of insurance in the event of any loss of or damage to any Vehicle and (iii) that the coverage is "primary coverage" for the protection of Lessee, Lessor, Servicer, any other agent of Lessor and their respective successors and assigns notwithstanding any other coverage carried by Lessee, Lessor, Servicer, any other agent of Lessor or any of their respective successors or assigns protecting against similar risks.
Source: Item 23 — RECEIPT (FDD pages 55–199)
What This Means (2025 FDD)
According to Canopy Lawn Care's 2025 Franchise Disclosure Document, the required insurance coverage is considered 'primary coverage.' This means that the franchisee's insurance policy will be the first one to respond to a covered claim, regardless of any other insurance policies held by Canopy Lawn Care, its agents, or related entities.
This requirement ensures that Canopy Lawn Care and its related parties are protected by the franchisee's insurance coverage as the first line of defense in case of an incident. It also means that the franchisee's insurance company will handle claims and legal defense initially, which could potentially impact the franchisee's future premiums and insurability.
Prospective Canopy Lawn Care franchisees should carefully review the insurance requirements and consult with their insurance provider to ensure they can obtain the necessary coverage, including the 'primary coverage' endorsement. Understanding the implications of primary coverage is crucial for managing risk and protecting their business and personal assets.