What is the required coverage for 'Special' causes of loss for a Crown Gold Exchange franchise?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 FDD Document
nt as Exhibit D).
- 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 must obtain 'Special' causes of loss coverage forms, including fire and extended coverage, crime, vandalism, and malicious mischief, on all business property. This coverage must be for the full repair and replacement value of the property, though it is subject to a reasonable deductible.
In addition to 'Special' causes of loss coverage, Crown Gold Exchange franchisees must also maintain other insurance policies. These include business interruption insurance covering at least 12 months of income, commercial general liability insurance with a $1,000,000 single limit per occurrence and a $2,000,000 aggregate limit, Jeweler's Insurance coverage of at least $1,000,000, and workers' compensation coverage as required by state law.
The insurance policies, excluding workers' compensation, must list Crown Gold Exchange and its affiliates as additional insured parties. These policies must also include a waiver of subrogation in favor of Crown Gold Exchange and its affiliates. Furthermore, the franchisee's insurance must be primary and non-contributing with any insurance held by Crown Gold Exchange or its affiliates. Finally, the insurance policies must stipulate that Crown Gold Exchange receives 30 days' prior written notice of cancellation.
It is common practice in franchising to require franchisees to maintain specific insurance coverage to protect both the franchisee's business and the franchisor's brand. The levels and types of coverage required by Crown Gold Exchange appear to be aligned with this practice, particularly given the nature of the business which involves valuable assets like jewelry and precious metals.