Does Care Plus Medical Ucc require franchisees to obtain insurance?
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
coverage, written on an "occurrence" policy form in an amount of not less than $1,000,000 single limit per occurrence and $2,000,000 aggregate limit, (iv) Malpractice Insurance coverage, written on an "occurrence" policy form in an amount of not less than $1,000,000 single limit per occurrence and $3,000,000 aggregate limit (v) Business Automobile Liability insurance including owned, leased, non-owned and hired automobiles coverage in an amount of not less than $1,000,000, and (vi) Workers Compensation coverage as required by state law. Your policies (other than Workers Compensation) must list us and our affiliates as an additional insured, must include a waiver of subrogation in favor of us and our affiliates, must be primary and noncontributing with any insurance carried by us or our affiliates, and must stipulate that we receive 30 days' prior written notice of cancellation.
- C. Point-of-sale software and hardware, and related software and hardware.
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 insurance coverage as detailed in the Franchise Agreement and Brand Standards Manual. This includes several types of insurance with minimum coverage amounts.
The required insurance 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 coverage, written on an "occurrence" policy form in an amount of not less than $1,000,000 single limit per occurrence and $2,000,000 aggregate limit, (iv) Malpractice Insurance coverage, written on an "occurrence" policy form in an amount of not less than $1,000,000 single limit per occurrence and $3,000,000 aggregate limit (v) Business Automobile Liability insurance including owned, leased, non-owned and hired automobiles coverage in an amount of not less than $1,000,000, and (vi) Workers Compensation coverage as required by state law.
Care Plus Medical Ucc also mandates that the insurance policies (excluding Workers Compensation) must list Care Plus Medical Ucc and its affiliates as additional insured parties. Additionally, these policies must 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 any policy cancellation. This ensures that Care Plus Medical Ucc is protected from potential liabilities and is informed of any changes to the franchisee's insurance coverage.
For a prospective franchisee, this means they will need to budget for these insurance costs and ensure they obtain the required coverage from approved providers. Failing to maintain the required insurance could result in a breach of the franchise agreement and potential penalties. It is common practice in franchising for franchisors to mandate specific insurance coverage to protect their brand and network from liabilities arising from franchisee operations.