Is a Clear Pest Pros franchisee currently obligated to purchase insurance from a specific provider?
Clear_Pest_Pros Franchise · 2025 FDDAnswer from 2025 FDD Document
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 not currently required to purchase insurance from a specific provider. However, Clear Pest Pros retains the right to mandate the use of a specific insurance provider in the future.
Regardless of the provider, all insurance policies must be written by a company licensed in the state where the franchisee operates and have an A.M. Best rating of "A" or better. The policies must also be satisfactory to Clear Pest Pros and meet the standards and specifications outlined in the Operations Manual or in writing.
The minimum insurance policy requirements include general liability, automobile liability, workers' compensation/employer’s liability, and umbrella liability insurance. Clear Pest Pros, BELFOR Franchise Group, LLC, BELFOR USA Group, Inc., and their affiliates, employees, officers, and directors must be named as additional insureds on the general liability policies. Franchisees must provide copies of insurance claims or cancellations within 24 hours and have a 24-hour opportunity to cure any lapses in coverage. Clear Pest Pros has the right to modify the minimum insurance requirements with 30 days' prior written notice.