Can Caring Senior Service require periodic verification of insurance coverage from Caring Senior Service franchisees?
Caring_Senior_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition to the purchases or leases described above, you must obtain and maintain, at your own expense, the insurance coverages that we require. We may regulate the types, amounts, terms and conditions of insurance coverage required for your Business and standards for underwriters of policies providing required insurance coverage; our protection and rights under such policies as an additional named insured; required or impermissible insurance contract provisions; assignment of policy rights to us; periodic verification of insurance coverage that must be furnished to us; our right to obtain insurance coverage at your expense if you fail to obtain required coverage; our right to defend claims; and similar matters relating to insured and uninsured claims. Our insurance requirements are included in the Operations Manual or otherwise in writing and may be periodically updated. You must comply with any changes to our insurance requirements, at your expense.
You currently must maintain the following insurance coverages, all of which must be written on a claimsmade basis: (1) professional liability; (2) general liability; (3) hired and non-owned automobile liability coverage; (4) crime coverage; (5) workers compensation; (6) employment practices liability; (7) property coverage; and (8) any insurance required by the state or locality in which the Franchised Business is located
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 21–23)
What This Means (2025 FDD)
According to Caring Senior Service's 2025 Franchise Disclosure Document, Caring Senior Service can require franchisees to furnish periodic verification of their insurance coverage. Caring Senior Service maintains broad authority over the insurance requirements for the business. This includes setting the types, amounts, terms, and conditions of required insurance coverage, as well as setting standards for the underwriters of these policies.
Caring Senior Service also has the right to be named as an additional insured on the franchisee's policies and to receive assignment of policy rights. They can dictate required or impermissible insurance contract provisions. If a franchisee fails to obtain the required insurance coverage, Caring Senior Service has the right to obtain the coverage at the franchisee's expense. Caring Senior Service's insurance requirements are included in the Operations Manual or otherwise in writing and may be periodically updated, and franchisees must comply with any changes to these requirements at their own expense.
The franchisee must maintain several insurance coverages, including professional liability, general liability, hired and non-owned automobile liability coverage, crime coverage, workers compensation, employment practices liability, and property coverage, as well as any insurance required by the state or locality in which the Franchised Business is located. The franchisee must maintain all required policies during the entire term of the Franchise Agreement and any renewal terms. Caring Senior Service may periodically increase or decrease the amounts of coverage required and may require different or additional kinds of insurance at any time.