What rating must the carrier have for the Property/Business Interruption insurance for a Cr3 American Exteriors franchise?
Cr3_American_Exteriors Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type | Minimum Amount | |
|---|---|---|
| Comprehensive General Liability (Policy type: Occurrence; Must be with an Admitted carrier with rating of ≥ A- VII, AM Best and include: waiver of subrogation, primary & non- contributory, contractual liability & independent contractors liability) | $1,000,000 per occurrence, $2,000,000 aggregate; $2,000,000 products/complete operations aggregate; $1,000,000 personal & advertising injury; $50,000 damage to rented premises; $5,000 medical | |
| Commercial Automobile Liability (Must be with a carrier with rating of ≥ A- VII, AM Best and include: owned auto, hired auto, and non-owned auto, and provide for waiver of subrogation and primary & non-contributory coverage) | $1,000,000 each accident; $1,000,000 uninsured; $1,000,000 underinsured (≤ $1,000 comprehensive and collision deductible) | |
| Contractors Errors & Omissions | $1,000,000 per occurrence, $1,000,000 aggregate | |
| (Policy type: Claims Made) | ||
| Workers Compensation | $1,000,000 each accident/incident/employee | |
| (Must be with a carrier with rating of ≥ | ||
| A- VII, AM Best, cannot exclude | ||
| owner-operators, and must include | ||
| waiver of subrogation and must include | ||
| uninsured independent contractors) | ||
| Any other insurance required by federal, state, or local law | ||
| Contractors Pollution Liability | $1,000,000 per occurrence, $1,000,000 aggregate | |
| (Policy type: Claims Made) | ||
| Property /Business Interruption (Must be with a carrier with rating of ≥ A- VII, AM Best) | ≥$10,000, Full replacement cost value per business personal property, full replacement cost value per tenant improvements, ≥ $25,000 business interruption + franchise royalties, full cover equipment |
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 25–29)
What This Means (2025 FDD)
According to Cr3 American Exteriors's 2025 Franchise Disclosure Document, the insurance carrier for the Property/Business Interruption insurance must have a minimum rating of A- VII from AM Best. Additionally, the minimum coverage required is at least $10,000, full replacement cost value per business personal property, full replacement cost value per tenant improvements, and at least $25,000 for business interruption plus franchise royalties, with full cover equipment.
This requirement ensures that Cr3 American Exteriors franchisees have adequate coverage to protect their business assets and income in the event of property damage or business interruption. Maintaining this level of insurance coverage is crucial for mitigating financial risks and ensuring business continuity.
Prospective franchisees should verify that their insurance policies meet these minimum requirements and that the insurance carrier has the specified rating from AM Best. Failure to comply with these insurance requirements could result in a breach of the franchise agreement and potential penalties.