Does Care Plus Medical Ucc require Workers Compensation coverage?
Care_Plus_Medical_Ucc Franchise · 2024 FDDAnswer from 2024 FDD Document
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- 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 Workers Compensation coverage as mandated by state law. In addition to Workers Compensation, franchisees must also secure several other types of insurance, including "Special" causes of loss coverage, business interruption insurance covering at least 12 months of income, Commercial General Liability insurance with limits of $1,000,000 per occurrence and $2,000,000 aggregate, Malpractice Insurance coverage with limits of $1,000,000 per occurrence and $3,000,000 aggregate, and Business Automobile Liability insurance with a limit of $1,000,000.
The insurance requirements outlined by Care Plus Medical Ucc are fairly standard in franchising, particularly for businesses that involve potential liabilities such as medical services. The specific coverage amounts may vary depending on the nature of the business and the perceived level of risk.
Care Plus Medical Ucc franchisees should be aware that all insurance policies (except Workers Compensation) must list Care Plus Medical Ucc and its affiliates as additional insured parties and include a waiver of subrogation in their favor. These policies must also be primary and noncontributing with any insurance carried by Care Plus Medical Ucc or its affiliates. Furthermore, Care Plus Medical Ucc must receive 30 days' prior written notice of any policy cancellation, ensuring that the franchisor is informed of any changes in the franchisee's insurance coverage.