Is Caption By Hyatt's obligation to indemnify limited by any insurance that any indemnified party maintains?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
8.5 Survival and Mitigation. The obligations under Sections 8.3 and 8.4 will continue in full force and effect subsequent to and notwithstanding this Agreement's expiration or termination. A Hyatt Indemnified Party or Franchisee Indemnified Party need not seek recovery from any insurer or other third party, or otherwise mitigate its Losses, in order to maintain and recover fully a claim under Section 8.3 or 8.4 (as applicable). The obligation to indemnify under Section 8.3 or 8.4 (as applicable) shall not be limited in any way by reason of any insurance that any indemnified party maintains.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to the 2025 FDD, Caption By Hyatt's obligation to indemnify is not limited by any insurance that any indemnified party maintains. This means that Caption By Hyatt remains responsible for its indemnification obligations regardless of any insurance coverage held by the party being indemnified.
This provision protects the franchisee by ensuring that Caption By Hyatt cannot avoid its indemnification responsibilities by claiming that the franchisee's insurance should cover the losses. It also states that a Hyatt Indemnified Party or Franchisee Indemnified Party does not need to seek recovery from any insurer or other third party, or otherwise mitigate its Losses, in order to maintain and recover fully a claim under Section 8.3 or 8.4.
This clause provides significant security for franchisees, as it ensures Caption By Hyatt remains fully accountable for its indemnification duties, irrespective of any existing insurance policies. Franchisees can rely on this provision when assessing their potential financial exposure and risk management strategies.