What is the duration for which a Clear Pest Pros franchisee must maintain insurance?
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.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 32–37)
What This Means (2025 FDD)
According to Clear Pest Pros' 2025 Franchise Disclosure Document, franchisees are required to maintain insurance coverage throughout the entire term of their Franchise Agreement. This obligation begins before attending initial training and continues for the duration of the agreement.
The insurance must protect the franchisee, their employees, Clear Pest Pros, its officers, and employees against potential losses, liabilities, personal injury, death, property damages, or theft that may arise from the operation and promotion of the Clear Pest Pros business. The specific details of the required insurance coverage are outlined in the Franchise Agreement or provided in writing by Clear Pest Pros.
It is important for prospective Clear Pest Pros franchisees to understand that failure to maintain the required insurance coverage can result in Clear Pest Pros obtaining insurance on their behalf, with the franchisee responsible for all associated costs and premiums. Furthermore, franchisees must provide copies of any insurance claims or cancellations to Clear Pest Pros within 24 hours and have a 24-hour opportunity to cure any lapses in coverage. Clear Pest Pros also requires at least 30 days' prior written notice from the insurance carrier for any policy cancellation, termination, non-renewal, or material modification.