What are the insurance requirements for a Delta Hotels By Marriott franchisee, and how should the policies be endorsed?
Delta_Hotels_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 6: Obligations of Franchisee.** Franchisee agrees to the following:]
Section 5. Insurance
Franchisee must provide and submit evidence to Marriott of adequate insurance in accordance with the Franchise Agreement and employment practices liability in an amount not less than $1,000,000 per occurrence including coverage for harassment, discrimination, wrongful termination, and third-party discrimination and harassment (if third-party discrimination and harassment coverage is not part of the commercially general liability policy). Marriott shall be named as an additional insured on the general liability and umbrella/excess liability policies and all coverage specified in the Franchise Agreement and in this Section 5 shall be primary and noncontributory to any other coverages Marriott may carry. All insurance policies required under the Franchise Agreement and in this Section 5 shall contain a waiver of subrogation in favor of Marriott and Franchisee shall waive all rights of recovery against Marriott. Franchisee shall deliver certificates of insurance (and if requested by Marriott original copies of the above policies) which evidence the required coverages, and any renewals thereof prior to the policy expiration to Marriott. Prior to execution of this Agreement, a certificate of insurance evidencing the required insurance and additional insured endorsement shall be attached as Exhibit A.
Section 6. Miscellaneous.
Source: Item 6 — Obligations of Franchisee.** Franchisee agrees to the following: (FDD pages 363–513)
What This Means (2025 FDD)
According to the 2025 Delta Hotels By Marriott Franchise Disclosure Document, franchisees must secure and maintain adequate insurance coverage as stipulated in the Franchise Agreement. This includes employment practices liability insurance with a minimum coverage of $1,000,000 per occurrence, which must cover harassment, discrimination, wrongful termination, and third-party discrimination and harassment. If the third-party discrimination and harassment coverage is not part of the commercial general liability policy, it must be obtained separately.
Delta Hotels By Marriott requires that it be named as an additional insured on the general liability and umbrella/excess liability policies. All insurance coverage must be primary and noncontributory to any other coverages Delta Hotels By Marriott may have. Additionally, all insurance policies must include a waiver of subrogation in favor of Delta Hotels By Marriott, and the franchisee must waive all rights of recovery against Delta Hotels By Marriott.
To ensure compliance, Delta Hotels By Marriott requires franchisees to provide certificates of insurance, and original copies of the policies if requested, evidencing the required coverages. These must be submitted to Delta Hotels By Marriott before the policy's expiration. Prior to the execution of the Franchise Agreement, a certificate of insurance evidencing the required insurance and additional insured endorsement must be attached as an exhibit.
In summary, prospective Delta Hotels By Marriott franchisees should carefully review the insurance requirements outlined in the Franchise Agreement and ensure they can obtain the necessary coverage, including the specific endorsements and liability limits. Failure to maintain adequate insurance could result in a breach of the Franchise Agreement and potential financial liability for the franchisee.