Is 'Stop Gap' coverage required in all states for a Clear Pest Pros franchise?

According to Clear Pest Pros' 2025 Franchise Disclosure Document, 'Stop Gap' coverage is not required in all states. It is specifically required in "Monopolistic States" such as Ohio, North Dakota, Washington, Wyoming, and West Virginia.

For franchisees operating in these states, 'Stop Gap' coverage must be purchased separately or added to the Commercial General Liability (CGL) policy. In Ohio, the 'Stop Gap' coverage must not contain an exclusion with the 'substantially certain to occur' language. This requirement ensures that Clear Pest Pros franchisees in these monopolistic states have adequate coverage for potential employer's liability claims that might not be covered under standard workers' compensation policies.

This specific requirement highlights the importance of understanding state-specific regulations when operating a Clear Pest Pros franchise. Prospective franchisees should consult with insurance professionals to ensure they meet all necessary coverage requirements in their specific state of operation, especially if they are located in one of the identified monopolistic states.