What insurance coverage is Christian Brothers Automotive required to procure and maintain during the term of the lease?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
DIMINISHED, EVEN IF THE INJURY, LOSS OR DAMAGE IS CAUSED BY THE NEGLIGENCE, OR ALLEGED NEGLIGENCE, OF OWNER OR LESSOR OR ANY OF ITS OR THEIR AGENTS, EMPLOYEES, CONTRACTORS, OR AFFILIATES.
- b. Insurance. Tenant shall, during the Term of this Lease commencing on the date hereof, procure and maintain, at its own cost and expense, all such insurance coverage and policies required pursuant to the Master Lease, endorsed to name the Lessor and the Owner (and upon Lessor's request any lender of Lessor and/or Owner) each as an additional insured and loss payee on a primary and non-contributory basis. Tenant shall also obtain and maintain twelve (12) months of business interruption insurance in such amounts as are determined appropriate by Lessor. Tenant shall obtain and maintain a business or commercial automobile liability policy covering all vehicles used in Tenant's business operations with limits of not less than One Million Dollars ($1,000,000.00) per each accident and endorsed to name the Lessor and the Owner (and upon Lessor's request any lender of Lessor and/or Owner) each as an additional insured on a primary and noncontributory basis.
Source: Item 23 — RECEIPTS (FDD pages 76–372)
What This Means (2025 FDD)
According to Christian Brothers Automotive's 2025 Franchise Disclosure Document, franchisees are required to secure and maintain specific insurance coverage throughout the lease term. This includes all insurance coverage and policies mandated by the Master Lease, with endorsements naming the Lessor and the Owner (and any lender upon request) as additional insured and loss payee on a primary and non-contributory basis.
Christian Brothers Automotive franchisees must also obtain and maintain business interruption insurance for twelve months, in amounts deemed appropriate by the Lessor. Additionally, a business or commercial automobile liability policy is required, covering all vehicles used in the franchisee's business operations, with limits of not less than $1,000,000.00 per accident. This policy must also include endorsements naming the Lessor and the Owner (and any lender upon request) as additional insured on a primary and non-contributory basis.
Depending on the Lessor and/or Owner requirements, franchisees may also need to secure and maintain earthquake and flood insurance, covering the full replacement cost of the premises. Franchisees are also obligated to increase their insurance coverage (type and/or amount) as promptly as reasonably possible if required. The full replacement cost of the insured property will be determined by the Lessor.