Must the commercial general liability insurance policy for a Degree Wellness franchise be an 'occurrence' policy?

According to Degree Wellness's 2025 Franchise Disclosure Document, the commercial general liability insurance policy must be an 'occurrence' policy. Additionally, Degree Wellness requires that the policy names Degree Wellness (and, if requested, its members, directors, employees, agents, and affiliates) as an additional insured.

An 'occurrence' policy covers incidents that occur during the policy term, regardless of when a claim is filed, which is a common requirement in franchise agreements to protect the franchisor from liabilities arising from the franchisee's operations. This requirement ensures that Degree Wellness is protected from potential liabilities related to the franchisee's business operations.

The franchisee is responsible for providing Degree Wellness with 30 days' advance written notice of any material modification, cancellation, or expiration of any insurance policy. The franchisee must also provide certificates and copies of additional insured endorsements as evidence of the insurance coverage, both when the agreement is executed and upon each subsequent renewal date. Furthermore, Degree Wellness retains the right to obtain the required insurance coverage on the franchisee's behalf if the franchisee fails to do so, with the franchisee responsible for reimbursing Degree Wellness for any costs or premiums incurred.