When must a Clear Pest Pros franchisee purchase and maintain the required insurance?
Clear_Pest_Pros Franchise · 2025 FDDAnswer from 2025 FDD Document
standards and specifications can result in the termination of this Agreement. Standards and specifications are updated periodically at our sole determination and are made available to you on our Clear Pest Pros owners' intranet website and in the Operations Manual.
C. INSURANCE.
Before attending either the 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 Clear Pest Pros Business. You acknowledge and agree that (a) the insurance you will maintain reflects the minimum amounts of coverage we require, (b) these minimums are not meant to reflect the actual needs you may have, and (c) it is your responsibility to carefully evaluate if these minimums will adequately meet your needs.
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.
Our current requirements are described below:
-
- Umbrella Policy and Commercial General Liability Insurance. You shall maintain a commercial umbrella liability insurance policy with a limit of at least $2,000,000 per occurrence and in the aggregate and shall list the commercial general liability, automobile liability and employers' liability policies as scheduled underlying policies. 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. The exclusion for employer's liability shall not apply to claims for covered contractually assumed liability claims. Safer Home Services International, LLC, BELFOR Franchise Group, LLC, and BELFOR USA Group Inc. shall be named as an additional insured on such policy on a primary and noncontributory basis with a Grantor of Franchise Form CG2029 or an insurer's comparable form. Such policy shall also contain a waiver of subrogation endorsement as to claims against Safer Home Services International, LLC, BELFOR Franchise Group, LLC, and BELFOR USA Group Inc.
-
- Automobile Liability Insurance. You shall maintain insurance with a combined single limit, CSL, of $1,000,000 for bodily injury and property damage for all owned or leased vehicles and for hired and non-owned motor vehicles. Additionally, uninsured motorist and under-insured motorist coverage will be equal to the CSL.
-
- Workers' Compensation and Employers' Liability.
Source: Item 22 — CONTRACTS (FDD pages 67–68)
What This Means (2025 FDD)
According to Clear Pest Pros's 2025 Franchise Disclosure Document, a franchisee must purchase and maintain insurance coverage before attending Initial Training, throughout the term of the Franchise Agreement, and at their own expense. This insurance protects the franchisee, their employees, Clear Pest Pros, its officers, and employees against potential losses, liabilities, personal injury, death, property damages, or theft connected to the operation and promotion of the Clear Pest Pros business.
The franchisee must provide proof of insurance to Clear Pest Pros at least ten days before attending Initial Training, when commencing business operations, whenever there's a change to the insurance policy, and before the expiration of any coverage. Failure to maintain the required insurance or provide satisfactory evidence may result in Clear Pest Pros obtaining insurance on the franchisee's behalf, with the franchisee responsible for all associated costs and premiums.
The franchisee cannot commence their Clear Pest Pros business until they provide certificates of insurance or other acceptable proof of all required insurances. They also cannot reduce policy limits, restrict coverage, cancel, or alter any insurance policy without Clear Pest Pros's written consent. The franchisee must also provide copies of any insurance claims or cancellations within 24 hours and has 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, and the franchisee must comply with these changes within the specified timeframe.