What is the deadline for purchasing insurance for a Clear Pest Pros franchise?
Clear_Pest_Pros Franchise · 2025 FDDAnswer from 2025 FDD Document
7 Insurance*
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.
All policies will be written by an insurance company(ies) that is/are licensed in the state in which you are doing business, and that has an A.M. Best rating of "A" or better. Currently, you are not obligated by the terms of this Agreement to purchase your insurance from any specific provider, although we reserve the right to specify the specific provider that you must use in the future.
Insurance policies will be written by an insurance company which is satisfactory to us and will be in accordance with the standards and specifications set forth in the Operations Manual or otherwise in writing, and will include, at a minimum (except as additional coverage and higher policy limits may reasonably be specified for all Businesses from time to time by us in the Operations Manual or otherwise in writing) the following:
Our current minimum insurance policy requirements are described below. You may choose to obtain additional insurance or higher policy limits if you so choose:
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- Commercial General Liability Insurance. You shall maintain insurance for "bodily injury," "property damage," and "personal and advertising injury" with no exclusion or limitation applying to the products/completed operations liability coverage. Limits shall be 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. Contractual liability coverage including the assumed personal injury endorsement shall be included to cover the indemnity provisions of this Agreement.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 32–37)
What This Means (2025 FDD)
According to Clear Pest Pros's 2025 Franchise Disclosure Document, franchisees must purchase and maintain insurance before attending initial training. This insurance must remain in effect throughout the term of the Franchise Agreement. The insurance protects the franchisee, their employees, Clear Pest Pros, its officers, and its employees against potential losses, liabilities, and damages related to the business's operation and promotion.
Clear Pest Pros requires franchisees to provide proof of insurance coverage and premium payments before attending initial training, when any changes are made to the policy, and before the expiration of any insurance coverage. If a franchisee fails to maintain the required insurance or provide satisfactory evidence of coverage, Clear Pest Pros has the option to obtain the necessary insurance on the franchisee's behalf, though they are not obligated to do so. If Clear Pest Pros does obtain insurance, the franchisee is required to cooperate fully and promptly sign all necessary forms and allow any required business inspections. The franchisee is also responsible for paying for the insurance.
Furthermore, Clear Pest Pros mandates that they receive copies of any insurance claims or cancellations within 24 hours, providing a 24-hour window to rectify any lapses in coverage. Insurance policies cannot be canceled, terminated, non-renewed, or materially modified without at least 30 days' prior written notice to Clear Pest Pros from the insurance carrier. Clear Pest Pros retains the right to modify the minimum insurance requirements with 30 days' prior written notice to the franchisee, who must comply within the specified timeframe.