What is the requirement for the insurance company writing the policies for a Clear Pest Pros franchise?
Clear_Pest_Pros Franchise · 2025 FDDAnswer from 2025 FDD Document
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 the 2025 Clear Pest Pros Franchise Disclosure Document, any insurance company providing policies for a Clear Pest Pros franchise must be licensed in the state where the franchisee operates and have an A.M. Best rating of "A" or better. While franchisees are not currently required to purchase insurance from a specific provider, Clear Pest Pros retains the right to mandate a specific provider in the future.
Clear Pest Pros also mandates minimum insurance policy requirements, which include commercial general liability insurance, pollution liability insurance, automobile liability insurance, workers' compensation and employer's liability, and umbrella liability insurance. The minimums for these range from $500,000 to $2,000,000 depending on the type of coverage.
Clear Pest Pros can modify these minimum insurance limits periodically to reflect changes in insurance standards, normal business practices, higher court awards, and other relevant circumstances. Franchisees should discuss their specific situation with their insurance agent and financial advisor to determine if they need coverage exceeding the minimums required by Clear Pest Pros. If a lease or customer contract requires higher insurance amounts, the franchisee must obtain the highest amount for such policy. Additionally, all general liability insurance policies must name Clear Pest Pros, BELFOR Franchise Group, LLC, BELFOR USA Group, Inc., and their designated affiliates, employees, officers, and directors as additional insureds.