Must the insurance policy for Canopy Lawn Care name the Lessor as an additional insured?
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. Original certi cates evidencing such coverage and naming Lessor, Servicer, any other agent of Lessor and any other person or entity designated by Lessor as additional insureds and loss payees shall be furnished to Lessor prior to the Delivery Date, and annually thereafter and/or as reasonably requested by Lessor from time to time.
Source: Item 23 — RECEIPT (FDD pages 55–199)
What This Means (2025 FDD)
According to the 2025 Canopy Lawn Care FDD, franchisees are required to secure insurance policies that name the Lessor and any other entities designated by the Lessor as additional insureds and loss payees. This requirement ensures that the Lessor is protected against potential liabilities and losses arising from the operation of the vehicles used in the Canopy Lawn Care business.
This insurance must cover commercial automobile liability, including uninsured/underinsured motorist coverage and no-fault protection where required by law, as well as physical damage (collision and comprehensive). The franchisee is responsible for ensuring that these policies meet the minimum requirements set forth in the agreement or any higher requirements mandated by governmental or regulatory agencies.
The franchisee must provide original certificates evidencing the required coverage to the Lessor before the Delivery Date, annually thereafter, and as reasonably requested by the Lessor. These certificates serve as proof that the franchisee has complied with the insurance requirements and that the Lessor is properly named as an additional insured and loss payee. Failure to comply with these insurance requirements can result in the franchisee being in default of the agreement, potentially leading to further actions by the Lessor.