What insurance is Delta Hotels By Marriott required to maintain?
Delta_Hotels_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
- 15.1 Insurance Required. During the Term, Franchisee will procure and maintain insurance with the coverages, deductibles, limits, carrier ratings, and policy obligations required by the Standards. Such insurance requirements may include: property insurance including business interruption, earthquake, flood, terrorism and windstorm; workers' compensation; commercial general liability; liquor liability; business auto liability; umbrella or excess liability; fidelity coverage; employment practices liability; cyber liability; and such other insurance customarily carried on hotels similar to the Hotel. Franchisor may change such requirements in the Standards and may also require Franchisee to obtain additional types of insurance or increase the amount of coverages. All insurance will by endorsement specifically:
- A. name as unrestricted additional insureds Franchisor, any Affiliate designated by Franchisor and their employees and agents (except for workers' compensation and fidelity insurance);
- B. provide that the coverages will be primary and that any insurance carried by any additional insured will be excess and non-contributory;
- C. contain a waiver of subrogation in favor of Franchisor and any Affiliate of Franchisor; and
- D. provide that the policies will not be canceled, non-renewed or reduced without at least 30 days' prior notice to Franchisor.
- 15.2 Other Requirements. Franchisee will deliver to Franchisor a certificate of insurance (and certified copy of such insurance policy if requested) evidencing the insurance required. Renewal certificates of insurance will be delivered to Franchisor not less than 10 days before their respective inception dates. If Franchisee fails to procure or maintain the required insurance, Franchisor will have the right and authority to procure (without any obligation to do so) such insurance at Franchisee's cost, including a reasonable fee for Franchisor's procurement and maintenance of such insurance. If Franchisee delegates its insurance obligations to any other Person, Franchisee will ensure that such Person satisfies such obligations. Such delegation will not relieve Franchisee of its obligations under this Section 15 and the Standards. Any failure to satisfy the insurance requirements is a default under this Agreement. Franchisee will cooperate with Franchisor in pursuing any claim under insurance required by this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 134–251)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, Delta Hotels By Marriott franchisees must maintain specific insurance coverage during the term of the franchise agreement, adhering to the standards set by Delta Hotels By Marriott. These insurance requirements may include property insurance (covering business interruption, earthquake, flood, terrorism, and windstorm), workers' compensation, commercial general liability, liquor liability, business auto liability, umbrella or excess liability, fidelity coverage, employment practices liability, and cyber liability. Additionally, franchisees must carry any other insurance customarily maintained by similar hotels. Delta Hotels By Marriott retains the right to modify these insurance requirements and may mandate additional types of coverage or increased coverage amounts.
All insurance policies must specifically name Delta Hotels By Marriott, its affiliates, and their employees and agents as unrestricted additional insureds (except for workers' compensation and fidelity insurance). The franchisee's coverage must be primary, with any insurance carried by Delta Hotels By Marriott or its affiliates being excess and non-contributory. The policies must also include a waiver of subrogation in favor of Delta Hotels By Marriott and its affiliates. Furthermore, the insurance policies must provide Delta Hotels By Marriott with at least 30 days' prior notice before any cancellation, non-renewal, or reduction in coverage.
The Delta Hotels By Marriott franchisee is responsible for providing a certificate of insurance (and a certified copy of the policy, if requested) to Delta Hotels By Marriott as evidence of the required insurance. Renewal certificates must be delivered no less than 10 days before the inception dates of the new policies. Should the franchisee fail to secure or maintain the necessary insurance, Delta Hotels By Marriott has the right, but not the obligation, to procure such insurance at the franchisee's expense, including a reasonable fee for procurement and maintenance. Delegating insurance obligations does not relieve the franchisee of their responsibilities, and any failure to meet these insurance requirements constitutes a default under the franchise agreement.