What is the condition regarding 'Stop Gap' coverage in Ohio for a Clear Pest Pros franchise?
Clear_Pest_Pros Franchise · 2025 FDDAnswer from 2025 FDD Document
ntained with limits
of at least $500,000 by accident, $500,000 by disease and $500,000 policy limit; or the minimum limit required by your state, whichever is higher. Such policy shall contain a waiver of subrogation endorsement as to claims against Safer Home Services International LLC, BELFOR Franchise Group, LLC and BELFOR USA Group, Inc. In "Monopolistic States", such as Ohio, North Dakota, Washington and Wyoming, "Stop Gap" coverage must be purchased separately or added to the CGL policy. "Stop Gap" in Ohio must not contain exclusion with the "substantially certain
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, if a franchisee operates in Ohio, 'Stop Gap' coverage must be purchased separately or added to the Commercial General Liability (CGL) policy. This is because Ohio is considered a 'Monopolistic State' along with North Dakota, Washington, and Wyoming.
The 'Stop Gap' coverage in Ohio must not contain an exclusion with the phrase 'substantially certain to occur.' This specific requirement ensures that the franchisee has appropriate coverage for potential liabilities related to their Clear Pest Pros business operations within Ohio.
This requirement is important for prospective franchisees to understand, as it affects their insurance obligations and costs. They must ensure that their insurance policy complies with this condition to avoid any gaps in coverage. It is advisable for potential Clear Pest Pros franchisees in Ohio to discuss this requirement with their insurance provider to secure the appropriate 'Stop Gap' coverage.