What are the minimum insurance requirements for a Chicken Guy franchisee?

ruments and documents, render such other assistance and do any acts and things as may, in the opinion of Chicken Guy's counsel, be necessary or advisable to protect and maintain Chicken Guy's interests in the Proprietary Marks, including, without limitation, Chicken Guy's interests in litigation or proceedings before the U.S. Patent and Trademark Office or other tribunal relating to the Proprietary Marks.

16. INSURANCE

A. Procurement of Insurance by Franchisee. Franchisee shall be responsible for all loss or damage arising from or related to Franchisee's development and operation of the Franchised Restaurant, and for all demands or claims with respect to any loss, liability, personal injury, death, property damage, or expense whatsoever occurring upon the premises of, or in connection with the development or operation of, the Franchised Restaurant. Franchisee shall maintain in full force and effect throughout the term of this Agreement that insurance which Franchisee determines is necessary or appropriate for liabilities caused by or occurring in connection with the development or operation of the Franchised Restaurant which shall include, at a minimum, insurance policies of the kinds, and in the amounts, required by Section 16.B. Chicken Guy, and any entity with an insurable interest designated by Chicken Guy, shall be an additional insured in all liability policies (except workers compensation) to the extent each has an insurable interest.

• B. Minimum Insurance Requirements. All insurance policies shall be written by an insurance company or companies satisfactory to Chicken Guy, in compliance with the standards, specifications, coverages and limits set forth in the Manual or otherwise provided to Franchisee in writing. Chicken Guy may reasonably increase the minimum required coverage and require different or additional kinds of insurance to reflect inflation, changes in standards of liability, higher damage awards or other relevant changes in circumstances. Franchisee shall receive written notice of such modifications and shall take prompt action to secure the additional coverage or higher policy limits. These policies shall include, at a minimum, the following:
• (1) Comprehensive or Commercial General Liability Insurance, including coverage for bodily injury, personal injury, products liability, contractual liability, broad form property damage, nonowned automobiles, and completed operations on an occurrence basis with policy limits of not less than $1,000,000 per occurrence and $2,000,000 in the aggregate.
• (2) All Risks Property Insurance for fire and related peril (including floods and earthquakes where applicable) with limits of insurance of not less than the full replacement value of the Franchised Restaurant, and its furniture, fixtures, equipment, inventory and other tangible property.
• (3) Business Interruption and Extra Expense Insurance, including rental payment continuation for a minimum of 12 months, loss of profits and other extra expenses experienced during the recovery from property loss.
  • (4) Plate Glass Insurance for replacement of glass from breakage.
• (5) Employer's Liability Insurance in the amount of $500,000 per person, $500,000 in the aggregate and $500,000 for occupational disease.
• (6) Liquor Liability Insurance for bodily injury and property damage on an occurrence basis with policy limits of not less than $1,000,000, to the extent that Chicken Guy has approved the sale of alcoholic beverages at the Franchised Restaurant.
• (7) Workers' Compensation and such other insurance as may be required by statute or rule of the state or locality in which the Franchised Restaurant is located. This coverage shall also be in effect for all of Franchisee's employees who participate in any of the training programs described in Section 12.
• (8) Builder's All Risk Insurance in connection with any new construction or substantial renovation, refurbishment or remodeling of the Franchised Restaurant. Franchisee shall also maintain performance and completion bonds in forms and amounts, and written by carrier(s), reasonably satisfactory to Chicken Guy.
• (9) Automobile Liability if Franchisee is engaged in any delivery operations. Coverage shall be on a Symbol 1 (any auto) basis and in the amount of $1,000,000 per occurrence on any auto.
• (10) Cyber Liability Insurance with a minimum limit of $1,000,000 to include coverage for business interruption loss, cyber extortion, data recovery costs and data and network liability.
• (11) Umbrella or Excess Liability Insurance in the amount of $3,000,000 per occurrence and $3,000,000 in annual aggregate that includes the prior mentioned coverages as underlying

policies. Coverage shall follow form over general liability (including non-owned & hired liability), liquor liability, automobile liability and employer's liability.

• C. General Insurance Requirements. The following general requirements shall apply to each insurance policy that Franchisee is required to maintain under this Agreement:
• (1) Each insurance policy shall be specifically endorsed to provide that the coverages shall be primary and that any insurance carried by any additional insured shall be excess and noncontributory. The applicable limits of each insurance policy shall be exhausted before any benefits (defense or indemnity) may be obtained under any other insurance (including self-insurance) providing coverage to Chicken Guy. The workers compensation policy shall include a waiver of subrogation in favor of Chicken Guy. In the event payments are required to be made under Chicken Guy's own insurance policies or selfinsurance (whether for defense or indemnity) before the applicable coverage limits for the insurance policies obtained by Franchisee are exhausted, Franchisee agrees to reimburse, hold harmless and indemnify Chicken Guy and its insurers for such payments. Franchisee shall notify its insurers of this Agreement and shall use reasonable efforts to obtain an endorsement on each policy it obtains pursuant to Section 16.B. stating as follows:

The applicable limits of this policy shall be applied and exhausted before any benefits may be obtained (whether for defense or indemnity) under any other insurance (including self-insurance) that may provide coverage to Chicken Guy. All insurance coverage obtained by Chicken Guy shall be considered excess insurance with respect to this policy, the benefits of which excess insurance shall not be available until the applicable limits of this policy are exhausted.

Source: Item 22 — CONTRACTS (FDD page 50)