How can a Crave tenant satisfy the minimum insurance limits required in Paragraphs 1 and 2?
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, a tenant can meet the minimum insurance limits outlined in Paragraphs 1 and 2 by securing and maintaining Umbrella/Excess Liability insurance. This insurance must be on an umbrella basis, exceeding and being no less broad than the primary liability coverage.
The Umbrella/Excess Liability insurance should have the same start and end dates as the primary liability coverage it supplements. The minimum limits of this insurance must be sufficient to meet the required primary minimum limits. Additionally, the policy should "drop down" for any exhausted aggregate limits of the primary liability coverage.
To ensure compliance, the tenant must have the insurer issue an endorsement to any policy procured to meet these obligations. This endorsement should provide per location per occurrence limits or per location aggregate limits for each Leased Premises leased under the agreement. It must also list the parties described in Paragraph 4 as Additional Insureds.