What endorsements are required for the automobile insurance policy for a Card My Yard franchise?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
shall not limit or exclude contractual liability;
- (2) Automobile insurance written on a combined single limit basis for bodily injury and property damage with a limit not less than $500,000 per accident. Such insurance shall include coverage for owned, hired, and nonowned automobiles and shall include additional insured and
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 27–32)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, franchisees must maintain automobile insurance with specific endorsements. The policy must be written on a combined single limit basis for bodily injury and property damage, with a limit of not less than $500,000 per accident.
This automobile insurance must include coverage for owned, hired, and nonowned automobiles. Additionally, the policy must include both additional insured and waiver of subrogation endorsements in favor of Card My Yard.
In practical terms, this means a Card My Yard franchisee needs to ensure their insurance policy not only covers their own vehicles but also any vehicles they hire or use for business purposes that they do not own. The additional insured endorsement protects Card My Yard from liabilities related to the franchisee's vehicle use, while the waiver of subrogation prevents the insurance company from pursuing Card My Yard to recover claim payments made to the franchisee. Franchisees must ensure they obtain these specific endorsements to comply with Card My Yard's insurance requirements.