Does Crown Gold Exchange require insurance policies to be primary and non-contributing?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 FDD Document
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- B. Insurance. You must obtain insurance as described in the Franchise Agreement and in our Brand Standards Manual, which includes (i) "Special" causes of loss coverage forms, including fire and extended coverage, crime, vandalism, and malicious mischief, on all property of the Business, for full repair and replacement value (subject to a reasonable deductible); (ii) Business interruption insurance covering at least 12 months of income; (iii) Commercial General Liability insurance, including products liability coverage, and broad form commercial liability coverage, written on an "occurrence" policy form in an amount of not less than $1,000,000 single limit per occurrence and $2,000,000 aggregate limit, (iv) Jeweler's Insurance coverage in an amount of not less than $1,000,000, and (v) Workers Compensation coverage as required by state law. Your policies (other than Workers Compensation) must list us and our affiliates as an additional insured, must include a waiver of subrogation in favor of us and our affiliates, must be primary and non-contributing with any insurance carried by us or our affiliates, and must stipulate that we receive 30 days' prior written notic
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 15–17)
What This Means (2024 FDD)
According to Crown Gold Exchange's 2024 Franchise Disclosure Document, franchisees are required to maintain specific insurance policies. These policies, with the exception of Workers Compensation, must list Crown Gold Exchange and its affiliates as additional insured parties.
Furthermore, these insurance policies must include a waiver of subrogation in favor of Crown Gold Exchange and its affiliates. This means that the insurance company cannot attempt to recover any claim payments from Crown Gold Exchange if a loss occurs.
Most importantly, the policies must be primary and non-contributing with any insurance carried by Crown Gold Exchange or its affiliates. This ensures that the franchisee's insurance is the first to respond to a covered loss, without requiring Crown Gold Exchange's insurance to contribute. The insurance policies must also stipulate that Crown Gold Exchange receives 30 days prior written notice of cancellation, allowing the franchisor time to ensure continuous coverage.