Who bears the costs for the insurance coverage required by Christian Brothers Automotive?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
To standardize insurance coverage and to afford you and CBAC protection against insurable risks, we may prescribe minimum standards and limits for insurance coverage to be purchased by you. Such standards and limits may be set forth in the Confidential Operations Manual, the Commercial Lease Agreement or Commercial Sub-Lease Agreement, or by other written notice. You must promptly provide us with certificates of insurance evidencing such coverage and copies of the underlying policies, including all endorsements, no later than the day after major equipment or lifts are delivered as policies must be in place by that date, and you must again furnish us with those certificates and policies whenever any coverage is renewed and/or replaced. All costs for such insurance will be borne by you. All insurance purchased by you must name CBAC (and where requested, its lenders and/or landlords) as an additional insured, and mortgagee/loss payee if required, on a primary and non-contributory basis, and must provide that CBAC will be given at least thirty (30) days' prior written notice of any termination, amendment, cancellation, or modification thereof.
Presently we require you to maintain the following minimum insurance amounts: (1) worker's compensation and employer's liability insurance, as well as any other insurance required by law; (2) comprehensive general liability insurance with limits of at least $1,000,000 per occurrence, and $2,000,000 general aggregate, including the following coverages: personal injury, employment practices, employee dishonesty, products/completed operations, and terrorism, among other coverages; (3) property insurance with limits based upon valuation and square footage, including building value, contents value, business income, data protection, valuable papers, equipment breakdown, employee tools, increased cost of construction and wind, hail, flood and earth movement (if required in your area); (4) automobile liability insurance, including owned, non-owned, and hired vehicle coverage, with at least $1,000,000 combined single limit; (5) excess liability coverage over general liability, property, automobile liability, and employer's liability, with at least $3,000,000 per occurrence; and (6) garage keepers liability insurance in the amount of at least $300,000.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 33–36)
What This Means (2025 FDD)
According to Christian Brothers Automotive's 2025 Franchise Disclosure Document, franchisees are responsible for covering the costs of all required insurance. Christian Brothers Automotive mandates minimum standards and limits for insurance coverage to protect both the franchisee and the franchisor against potential risks. These standards can be found in the Confidential Operations Manual, the Commercial Lease Agreement or Sub-Lease Agreement, or through other written notices. Franchisees must provide certificates and copies of insurance policies to Christian Brothers Automotive, ensuring coverage is in place by the time major equipment is delivered and whenever policies are renewed or replaced.
The required insurance coverage must name Christian Brothers Automotive (and its lenders or landlords, if requested) as an additional insured and mortgagee/loss payee on a primary and non-contributory basis. Furthermore, Christian Brothers Automotive must receive at least 30 days' prior written notice of any termination, amendment, cancellation, or modification of the insurance policies.
The minimum insurance amounts Christian Brothers Automotive requires include worker's compensation and employer's liability insurance, comprehensive general liability insurance (with limits of at least $1,000,000 per occurrence and $2,000,000 general aggregate), property insurance, automobile liability insurance (with at least $1,000,000 combined single limit), excess liability coverage (with at least $3,000,000 per occurrence), and garage keepers liability insurance (in the amount of at least $300,000).