What endorsement must the Insurer issue to any policy a Crave tenant procures in satisfaction of its obligations regarding umbrella/excess liability insurance?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
- (3) Tenant may satisfy the minimum limits required in Paragraphs 1 and 2, above, by procuring and maintaining Umbrella/Excess Liability insurance on an umbrella basis, in excess over, and no less broad than the primary liability coverage; with the same inception and expiration dates as the primary liability coverage it is in excess of; with minimum limits necessary to satisfy the required primary minimum limits; and which "drop down" for any exhausted aggregate limits of the primary liability coverage. Tenant shall cause Insurer to issue an endorsement to any policy Tenant procures in satisfaction of its obligations in this paragraph providing per location per occurrence limits or per location aggregate limits for each Leased Premises leased under this lease and listing as Additional Insured the parties described below in Paragraph 4.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, if a tenant chooses to meet the minimum insurance limits through an umbrella/excess liability insurance policy, the insurer must issue a specific endorsement. This endorsement must provide per location per occurrence limits or per location aggregate limits for each leased premises. Additionally, the endorsement must list the parties described in Paragraph 4 as Additional Insureds.
In practical terms, this means that if a Crave franchisee opts for umbrella/excess liability insurance, the insurance policy must clearly specify the coverage limits for each individual Crave location. This ensures that each location has adequate coverage and that Crave and other relevant parties are protected as additional insureds.
This requirement protects Crave by ensuring that the insurance coverage is appropriately allocated to each specific location and that the necessary parties are covered as additional insureds. Franchisees need to ensure that their insurance policies meet these requirements to avoid being in breach of their lease agreement.