Does the automobile insurance coverage for a Crawlspace Medic franchise need to include under-insured and uninsured motorist coverage?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
the limits required by the state in which the Franchised Business is located and operated, but not less than five hundred thousand dollars ($500,000);
- 15.1.3. Automobile. Coverage for all owned, leased, non-owned and hired vehicles used in the Franchised Business in an amount o
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2024 FDD)
According to Crawlspace Medic's 2024 Franchise Disclosure Document, franchisees are required to secure automobile insurance that includes under-insured and uninsured motorist coverage, as mandated by state law. This coverage applies to all vehicles, whether owned, leased, non-owned, or hired, that are used in the operation of the Crawlspace Medic franchised business. The minimum coverage required is $300,000 per occurrence.
This requirement ensures that Crawlspace Medic franchisees are protected financially in the event of an accident involving a driver who is either under-insured or completely uninsured. State laws vary regarding the specifics of these coverage types, so franchisees must comply with the regulations in their specific state.
Prior to commencing operations, franchisees must provide Crawlspace Medic with certificates of insurance as evidence of the required coverage. Maintaining this insurance coverage is an ongoing obligation throughout the term of the Franchise Agreement. Failing to maintain the required insurance could result in a breach of the agreement.