What specific insurance policies must name Cilantro Taco Grill as an additional named insured?

According to Cilantro Taco Grill's 2024 Franchise Disclosure Document, the general liability and property damage insurance policies must name Cilantro Taco Grill as an additional insured. This requirement extends not only to Cilantro Taco Grill itself but also to its affiliates, officers, directors, shareholders, partners, agents, representatives, independent contractors, servants, and employees.

This requirement means that if a franchisee's business operations result in a claim, Cilantro Taco Grill and its related parties are protected under the franchisee's insurance policy. Additionally, the policy must include a waiver of subrogation in favor of all those parties, which prevents the insurance company from pursuing Cilantro Taco Grill or its affiliates to recover claim payments made to the franchisee.

For a prospective Cilantro Taco Grill franchisee, this requirement translates into potentially higher insurance premiums, as adding additional insured parties increases the insurer's risk. It is essential for franchisees to understand this obligation and factor it into their operating costs. Franchisees should consult with their insurance provider to ensure they obtain the appropriate coverage and that all required parties are correctly listed as additional insureds on their policies.