Who must be named as additional insureds on both the General Liability and Vehicle Liability insurance policies for a Chem-Dry franchise?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
icles must be insured with the same limits.
- CDI, its parents, and BFG National Accounts (and their officers, directors, employees, agents and affiliates and subsidiaries) must be named as additional insureds on both the General Liability and Vehicle Liability insurance policies.
- The business liability insurance policy must state that the work product is covered at a minimum of $50,000 per occurrence, or that there is no "workmanship
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 31–33)
What This Means (2024 FDD)
According to Chem-Dry's 2024 Franchise Disclosure Document, Chem-Dry franchisees are required to maintain both General Liability and Vehicle Liability insurance policies, and specific entities must be named as additional insureds on both. This requirement ensures that certain parties are protected under the franchisee's insurance coverage in the event of a claim.
Specifically, CDI (presumably Chem-Dry itself), its parents, and BFG National Accounts (along with their officers, directors, employees, agents, affiliates, and subsidiaries) must be listed as additional insureds on both the General Liability and Vehicle Liability insurance policies. This means that these entities would be covered under the franchisee's insurance policy for claims related to the franchisee's operations.
This requirement is a fairly standard practice in franchising, as it protects the franchisor and related entities from liability arising from the franchisee's business activities. Franchisees must ensure their insurance policies comply with this requirement to maintain their franchise agreement. Additionally, the business liability insurance policy must cover work product at a minimum of $50,000 per occurrence, or have no "workmanship" or "care, custody, and control" exclusion.