What evidence of insurance coverage does City Publications require from the franchisee before opening?

According to City Publications' 2025 Franchise Disclosure Document, franchisees must provide a certificate of insurance annually as evidence of coverage. This certificate must demonstrate compliance with the required insurance policies and confirm that the policies will not be canceled or altered without at least thirty days prior written notice to City Publications. The certificate must also show proof of payment of premiums.

City Publications requires franchisees to secure several types of insurance, naming City Publications as an additional insured or loss payee. These include comprehensive general public liability insurance with minimum liability coverage as specified by City Publications, currently at least $1,000,000.00, "All Risk" coverage insurance on all contents for full "replacement cost", and workers' compensation insurance that complies with state statutory requirements, including employer liability coverage with a $100,000.00 minimum limit. Additionally, franchisees need automobile liability insurance with a combined single limit of at least $1,000,000.00, general property damage insurance, business interruption insurance, trucking, shipping, freight or F.O.B. insurance coverage, and any insurance necessary to provide coverage under the indemnity provisions set forth in Section 22.B of the Franchise Agreement.

The insurance policies must be written by an insurance company licensed in the state where the franchisee operates and have at least an "A" Rating Classification as indicated in A.M. Best's Key Rating Guide, in accordance with the standards and specifications set forth in the Manual. If a franchisee fails to maintain the required insurance coverage, City Publications has the right, but not the obligation, to procure the necessary coverage and charge the franchisee for the costs, including a reasonable fee for expenses incurred by City Publications in connection with such procurement. This ensures that the franchise system is protected from potential liabilities and financial losses.

It is important for prospective City Publications franchisees to understand these insurance requirements and factor the costs of obtaining and maintaining the necessary coverage into their business plan. Failing to comply with these requirements can lead to City Publications procuring insurance on the franchisee's behalf and charging them for it, or potentially even a breach of the franchise agreement.