Who must the insurance policies protect 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:
-
- 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. 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.
-
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, the insurance policies a franchisee must maintain are designed to protect several parties. Specifically, the policies must protect the franchisee themselves, their employees, Clear Pest Pros as the franchisor, and Clear Pest Pros's officers and employees. This protection extends to cover potential losses, liabilities, fire incidents, personal injuries, death, property damages, or theft that could arise from or occur in connection with the operation and promotion of the Clear Pest Pros business.
This requirement ensures that all key stakeholders associated with the Clear Pest Pros franchise are shielded from financial risks related to the business's operations. By including Clear Pest Pros and its personnel in the insurance coverage, the franchisor mitigates its own potential liabilities stemming from the actions or incidents involving its franchisees. This is a common practice in franchising, as it aligns the interests of both the franchisee and franchisor in maintaining a safe and responsible business operation.
The franchisee is responsible for purchasing and maintaining these insurance policies throughout the term of the Franchise Agreement and at their own expense. Clear Pest Pros specifies that the insurance company providing the policies must be licensed in the state where the franchisee operates and have an A.M. Best rating of "A" or better, indicating a strong financial standing. While franchisees are not currently obligated to purchase insurance from a specific provider, Clear Pest Pros retains the right to specify a mandatory provider in the future.
Furthermore, Clear Pest Pros requires that all general liability insurance policies name Clear Pest Pros, BELFOR Franchise Group, LLC, BELFOR USA Group, Inc., and their designated affiliates, employees, officers, and directors as additional insureds. These policies must not limit or reduce coverage for the franchisee if a claim is made by any of the indemnified parties. The insurance should cover all obligations assumed by the franchisee and provide indemnity for all items for which the franchisee is required to indemnify Clear Pest Pros. Clear Pest Pros also mandates a 30-day notice of any intent to cancel or materially alter any policy.