Who must be named as additional insureds on Casiola's insurance policies?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
You must obtain the insurance coverage that we require from time to time as presently disclosed in the Manuals and as we may modify. All insurance policies required under your Franchise Agreement and as set forth in the Franchise Agreement must be written by a responsible carrier, reasonably acceptable to us, and all insurance, excluding workers' compensation, must name us, our officers, directors, shareholders, partners, agents, representatives and independent contractors as additional insureds. The insurance policies must include a provision that the insurance carrier must provide us with no less than 30 days' prior written notice in the event of a material alteration to, or cancellation of, any insurance policy. A certificate of insurance must be furnished by you to use at the earlier of 90 days after the Effective Date of the Franchise Agreement or prior to the commencement of our initial training program. Insurance coverage must be at least as comprehensive as the minimum requirements set forth below and in the Franchise Agreement (Franchise Agreement, Article 8). You must consult your carrier representative to determine the level of coverage necessary for the Franchised Business.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 20–24)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, Casiola franchisees are required to secure specific insurance coverage, and Casiola along with its officers, directors, shareholders, partners, agents, representatives, and independent contractors must be named as additional insureds on those policies, excluding workers' compensation.
This requirement means that in the event of a claim covered by the franchisee's insurance, Casiola and its associated parties are protected from financial liability. This is a common practice in franchising, as it shields the franchisor from potential lawsuits or financial losses arising from the franchisee's operations. The franchisee bears the cost of this additional coverage.
The insurance policies must also include a provision that the insurance carrier provide Casiola with at least 30 days' prior written notice if there are any material alterations or cancellations to the policy. Furthermore, the franchisee must furnish a certificate of insurance to Casiola, either 90 days after the effective date of the Franchise Agreement or before the start of the initial training program, whichever comes first. This ensures that Casiola is promptly informed of any changes to the franchisee's insurance coverage and can take necessary steps to protect its interests.
The franchisee is responsible for consulting with their insurance carrier to determine the appropriate level of coverage necessary for their Casiola business, ensuring it meets or exceeds the minimum requirements outlined in the Franchise Agreement. Franchisees should carefully review the insurance requirements and understand the implications of naming Casiola as an additional insured.