What is the relationship between the insurance requirements and attending the Initial Training for a Clear Pest Pros franchise?
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:
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- 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.
Source: Item 22 — CONTRACTS (FDD pages 67–68)
What This Means (2025 FDD)
According to Clear Pest Pros's 2025 Franchise Disclosure Document, franchisees must secure and maintain specific insurance coverage throughout the term of their agreement. A key requirement is that franchisees must have this insurance in place before attending the Initial Training. This insurance protects the franchisee, their employees, Clear Pest Pros, its officers, and employees against potential losses, liabilities, injuries, damages, or theft related to the operation of the Clear Pest Pros business.
The insurance policies must be written by companies licensed in the state where the franchisee operates and have an A.M. Best rating of "A" or better. While Clear Pest Pros does not currently mandate purchasing insurance from a specific provider, they retain the right to do so in the future. The franchisee is responsible for ensuring that the coverage amounts meet their actual needs, as the minimums specified by Clear Pest Pros may not be sufficient.
Specifically, franchisees must provide proof of insurance to Clear Pest Pros at least ten days before attending Initial Training. They also need to provide proof before commencing business operations, whenever there's a change to the policy, and before any insurance coverage expires. Failure to maintain the required insurance or provide satisfactory evidence may allow Clear Pest Pros to obtain insurance on the franchisee's behalf, with the franchisee responsible for all associated costs and premiums. The franchisee cannot begin operating the Clear Pest Pros Business until they have provided the certificates of insurance or other acceptable proof of all insurances.