What evidence of insurance is required to be submitted to IHG before starting construction of a Crowne Plaza hotel?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
Before starting construction of the Hotel (including any restaurants, bars or other components thereof), Licensee must (at Licensee's sole expense):
Submit to IHG evidence of insurance as required under this License.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza Franchise Disclosure Document, before starting construction of a new hotel, the franchisee must submit evidence of insurance to IHG (InterContinental Hotels Group) as required under the license agreement. This is a mandatory step before any construction can begin on the Crowne Plaza hotel, including any restaurants, bars, or other components.
In practical terms, this means a prospective Crowne Plaza franchisee needs to carefully review the franchise agreement to understand the specific insurance requirements. They must then obtain the necessary insurance coverage and provide proof of that coverage to IHG before commencing any construction activities. This ensures that both the franchisee and IHG are protected against potential risks and liabilities during the construction phase.
It is important for the franchisee to clarify with IHG exactly what constitutes acceptable "evidence of insurance," such as specific policy documents or certificates. Failing to provide adequate proof of insurance could delay the construction process and potentially put the franchisee in breach of the franchise agreement. This requirement is typical in franchising, as franchisors need to protect their brand and ensure franchisees meet minimum risk management standards.