Must the insurance policies for my Deck Medic franchise be written by a responsible carrier?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
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- Insurance You must obtain the insurance coverage that we require from time to time as presently disclosed in the Manuals and as we may modify. All insurance policies required under your Franchise Agreement and as set forth in the Franchise Agreement must be written by a responsible carrier, reasonably acceptable to us, and all insurance (excluding workers' compensation) must name us, our officers, directors, shareholders, partners, agents, representatives and independent contractors as additional insureds. The insurance policies must include a provision that the insurance carrier must provide us with no less than 30 days' prior written notice in the event of a material alteration to, or cancellation of, any insurance policy. A certificate of insurance must be furnished by
you to use at the earlier of 90 days after the Effective Date of the Franchise Agreement or prior to the commencement of our initial training program. Insurance coverage must be at least as comprehensive as the minimum requirements set forth in the chart below and in the Franchise Agreement (Franchise Agreement, Article 8). You must consult your carrier representative to determine the level of coverage necessary for the Franchised Business. Higher exposures may require higher limits.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 19–22)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, all insurance policies must be written by a responsible carrier that is reasonably acceptable to Deck Medic. This requirement ensures that the insurance coverage is reliable and meets Deck Medic's standards.
In addition to being written by a responsible carrier, all insurance policies (excluding workers' compensation) must name Deck Medic, its officers, directors, shareholders, partners, agents, representatives, and independent contractors as additional insureds. This protects Deck Medic from potential liabilities related to the franchisee's operations. The insurance policies must also include a provision that the insurance carrier provide Deck Medic with no less than 30 days' prior written notice in the event of a material alteration to, or cancellation of, any insurance policy. This allows Deck Medic to ensure continuous coverage and address any potential gaps.
A certificate of insurance must be furnished by the franchisee at the earlier of 90 days after the Effective Date of the Franchise Agreement or prior to the commencement of the initial training program. Franchisees must consult their carrier representative to determine the level of coverage necessary for the Franchised Business, as higher exposures may require higher limits. Deck Medic also specifies minimum coverage requirements, such as $1,000,000 per occurrence and $2,000,000 in the aggregate for comprehensive general liability insurance.