What kind of property insurance coverage is required for a Care Plus Medical Ucc franchise?
Care_Plus_Medical_Ucc Franchise · 2024 FDDAnswer from 2024 FDD Document
- B. Insurance. You must obtain insurance as described in the Franchise Agreement and in our Brand Standards Manual, which includes (i) "Special" causes of loss coverage forms, including fire and extended coverage, crime, vandalism, and malicious mischief, on all property of the Business, for full repair and replacement value (subject to a reasonable deductible); (ii) Business interruption insurance covering at least 12 months of income; (iii) Commercial General Liability insurance, including products liability coverage, and broad form commercial liability
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 18–20)
What This Means (2024 FDD)
According to Care Plus Medical Ucc's 2024 Franchise Disclosure Document, franchisees are required to obtain specific property insurance coverage. This includes "Special" causes of loss coverage forms, which encompass fire and extended coverage, crime, vandalism, and malicious mischief. This coverage must be for the full repair and replacement value of all business property, subject to a reasonable deductible.
In addition to property coverage, Care Plus Medical Ucc requires franchisees to maintain business interruption insurance that covers at least 12 months of income. This is a common requirement in franchising, ensuring that franchisees can continue to meet financial obligations even if their business operations are temporarily disrupted.
The insurance policies, with the exception of Workers Compensation, must list Care Plus Medical Ucc and its affiliates as additional insured parties. These policies must also include a waiver of subrogation in favor of Care Plus Medical Ucc and its affiliates, be primary and noncontributing with any insurance carried by them, and stipulate that Care Plus Medical Ucc receives 30 days' prior written notice of cancellation. These stipulations protect Care Plus Medical Ucc from potential liabilities and ensure they are informed of any changes to the franchisee's insurance coverage.