Under what conditions does IHG have the right to procure insurance at the Crowne Plaza licensee's cost?

According to Crowne Plaza's 2025 Franchise Disclosure Document, IHG has the right to procure insurance at the licensee's cost if the licensee fails to procure or maintain the insurance coverages and limits as outlined in paragraph 8.B. This includes any costs incurred by IHG for the procurement and maintenance of such insurance.

This means that as a Crowne Plaza franchisee, you are responsible for obtaining and maintaining specific insurance coverage as mandated by IHG. These requirements will be detailed in paragraph 8.B of the franchise agreement, which is not included in the provided documentation. Failure to comply with these insurance requirements gives IHG the authority, but not the obligation, to secure the necessary insurance on your behalf.

The critical implication here is that the franchisee will bear the financial burden of this insurance, potentially at a higher cost than if they had secured it themselves. It is important for a prospective franchisee to carefully review the insurance requirements in paragraph 8.B and ensure they can meet these obligations to avoid IHG stepping in and charging them for the insurance coverage. Franchisees should clarify with IHG what the typical costs are for such insurance to factor this into their financial planning.