Who must be named on the insurance policies for a Deck Medic franchise?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
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
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, with the exception of workers' compensation, must name Deck Medic, its officers, directors, shareholders, partners, agents, representatives, and independent contractors as additional insureds.
This requirement means that if a franchisee is sued for something covered by their insurance, Deck Medic also receives protection under that policy. This is a common practice in franchising, as it shields the franchisor from liability related to the franchisee's operations. Franchisees must ensure their insurance policies are written by a carrier reasonably acceptable to Deck Medic and include a provision that the insurance carrier must 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.
The franchisee is required to furnish a certificate of insurance to Deck Medic at the earlier of 90 days after the effective date of the Franchise Agreement or prior to the commencement of the initial training program. This certificate serves as proof that the franchisee has obtained the necessary insurance coverage and that Deck Medic is listed as an additional insured. Franchisees should consult with their insurance representative to determine the appropriate level of coverage necessary for their Deck Medic business, as higher exposures may require higher limits.
The FDD also outlines specific minimum insurance requirements, including coverage for property damage, general liability ($1,000,000 per occurrence and $2,000,000 in the aggregate), workers' compensation ($100,000 limit), employer's liability ($500,000 limit per accident/disease, $1,000,000 aggregate), business automobile insurance ($1,000,000 limit), business interruption insurance (12 months of net income and expenses), commercial umbrella liability insurance ($2,500,000 limit), and employment practices liability insurance ($1,000,000 limit). Franchisees must maintain these coverages to protect their business and ensure compliance with the Franchise Agreement.