If a City Wide franchisee provides service to a National Account, what insurance obligations do they have?

According to City Wide's 2025 Franchise Disclosure Document, if a franchisee provides service to a National Account, they must carry the types and coverages of insurance required by each National Account Contract. The franchisee is solely responsible for ensuring that any subcontractors used to perform services for a National Account also carry the required types and coverages of insurance. This means that franchisees need to carefully review the insurance requirements specified in each National Account Contract to ensure they and their subcontractors are adequately insured.

Beyond the specific requirements of National Account Contracts, City Wide also mandates certain minimum insurance coverages for all franchisees. These include Comprehensive General Liability ($1,000,000 per occurrence, $2,000,000 aggregate), Hired/Non-Owned Auto Coverage ($1,000,000 per occurrence), Cyber Insurance ($1,000,000 per occurrence), Crime/Employee Dishonesty ($100,000 per occurrence), and Employment Practices liability insurance. Additionally, franchisees must maintain Worker's Compensation Statutory Benefits and Business Interruption Insurance.

City Wide also recommends (but requires only if the client requires it) General Liability Umbrella ($5,000,000) and Employee Honesty Bond ($50,000), along with Errors and Omissions insurance. Therefore, when pursuing National Accounts, a City Wide franchisee must be prepared to meet potentially higher insurance requirements than the standard minimums, and factor those costs into their business planning and pricing. Failing to maintain adequate insurance coverage could result in a breach of contract and potential liability for any damages incurred.