Who bears the expense of the insurance policies for a Clear Pest Pros franchise?
Clear_Pest_Pros Franchise · 2025 FDDAnswer from 2025 FDD Document
Before attending Initial Training, you promise to purchase and maintain in full force and effect throughout the Term of this Agreement and at your expense, insurance protecting you, your employees, and us, our officers, and our employees, against loss, liability, fire, personal injury, death, property damages, or theft arising from, or occurring in connection with, the operation and promotion of the Business as specified in detail in the Franchise Agreement or otherwise in writing from us.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 32–37)
What This Means (2025 FDD)
According to the 2025 Clear Pest Pros Franchise Disclosure Document, the franchisee is responsible for the expense of maintaining insurance policies. Specifically, before attending Initial Training, the franchisee must purchase and maintain insurance throughout the term of the agreement. This insurance protects the franchisee, their employees, Clear Pest Pros, its officers, and its employees against various liabilities such as loss, personal injury, death, property damages, or theft connected to the operation and promotion of the Clear Pest Pros business.
The insurance policies must be written by a company licensed in the state where the franchisee operates, with an A.M. Best rating of "A" or better. While franchisees are not currently obligated to purchase insurance from a specific provider, Clear Pest Pros reserves the right to specify a provider in the future. The policies must meet the standards and specifications outlined in the Operations Manual, including minimum coverage requirements that Clear Pest Pros may modify over time to reflect changes in insurance standards or business practices.
The minimum insurance policy requirements include commercial general liability insurance with limits of at least $2,000,000 general aggregate, $2,000,000 products and completed operations aggregate, $1,000,000 personal and advertising injury limit, and $1,000,000 per occurrence limit. Franchisees must also maintain pollution liability insurance covering the application of pesticides with a $1,000,000 per occurrence policy limit, automobile liability insurance with a combined single limit of $1,000,000, and statutorily required workers' compensation and employers' liability insurance. Additionally, franchisees must carry umbrella liability insurance with a limit of at least $2,000,000 per occurrence and aggregate.
Clear Pest Pros requires that all general liability insurance policies name Clear Pest Pros, BELFOR Franchise Group, LLC, BELFOR USA Group, Inc., and their affiliates as additional insureds. Franchisees must provide Clear Pest Pros with proof of insurance before initial training, when changes are made to the policy, and before the expiration of any coverage. If a franchisee fails to maintain the required insurance, Clear Pest Pros has the option to obtain insurance on the franchisee's behalf, with the franchisee responsible for promptly paying all associated costs and premiums. Franchisees should consult with their insurance agent and financial advisor to determine if their personal situation requires coverage exceeding the minimums set by Clear Pest Pros.