What are the requirements for insurance coverage that Caption By Hyatt franchisees must maintain?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
At Franchisee's expense, Franchisee must procure and at all times during the Term maintain such insurance covering the risks, in the amounts, and with the deductibles, retentions and other provisions, as set forth in the System Standards from time to time. All insurance must by endorsement specifically name Hyatt and its Affiliates (and Hyatt's and their employees and agents) as additional insureds. Franchisee must purchase each policy from an insurance company reasonably acceptable to Hyatt. Either the insurer or Franchisee must provide at least thirty (30) days' prior written notice to Hyatt of any insurance policy's cancellation, non-renewal or material change. Franchisee must deliver to Hyatt a certificate of insurance (or certified copy of such insurance policy if Hyatt requests) evidencing the required coverages and setting forth the amount of any deductibles not less than ten (10) days after their respective inception dates. Franchisee must ensure that each F&B Operator (if any) and Spa Operator (if any) maintains the insurance and otherwise complies with all applicable obligations under this ARTICLE IX that Hyatt periodically specifies, including by naming Hyatt and any Affiliates that Hyatt periodically designates (and Hyatt's and their employees and agents) as additional insureds and delivering certificates of insurance to Hyatt. If Franchisee fails for any reason to procure or maintain the insurance required by this Agreement, Hyatt shall have the right and authority (although without any obligation to do so) to immediately procure such insurance and to charge Franchisee the cost together with a reasonable fee for Hyatt's expenses. Hyatt shall have the right to review Franchisee's insurance coverage for the foregoing requirements from time to time during the Term and to update requirements for insurance coverage in response to material changes in the circumstances of the Hotel, then-current industry practices, and changes in economic conditions. Franchisee shall promptly comply with Hyatt's updated requirements.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to Caption By Hyatt's 2025 Franchise Disclosure Document, franchisees are required to secure and maintain insurance coverage throughout the term of the franchise agreement. The specific risks covered, the amounts of coverage, and the deductibles and retentions must align with the System Standards, which may be updated periodically by Hyatt.
All insurance policies must specifically name Hyatt and its affiliates as additional insureds via endorsement. The insurance company providing the coverage must be reasonably acceptable to Hyatt. Furthermore, Caption By Hyatt requires that they receive at least thirty days' prior written notice if any insurance policy is canceled, not renewed, or undergoes a material change. Franchisees must provide Hyatt with a certificate of insurance (or a certified copy of the policy, if requested) within ten days after the policy's inception, evidencing the required coverages and deductible amounts.
Caption By Hyatt also stipulates that if the franchisee has an F&B Operator or Spa Operator, they must ensure these operators maintain insurance coverage that complies with the requirements specified by Hyatt, including naming Hyatt and its affiliates as additional insureds and providing certificates of insurance. Should a franchisee fail to maintain the required insurance, Hyatt reserves the right to procure the necessary insurance and charge the franchisee for the cost, along with a reasonable fee for Hyatt's expenses. Hyatt retains the right to review and update insurance coverage requirements periodically in response to changes in the hotel's circumstances, industry practices, and economic conditions, and franchisees must promptly comply with these updated requirements.