What insurance coverages and policies are Dermani Medspa franchisees required to obtain and maintain?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
Under the Franchise Agreement, you must obtain and maintain the insurance coverages and policies that we prescribe in the Manuals. Each insurance policy must be issued by an issuer we approve, who must have a rating of at least "A" in the most recent Key Rating Guide published by the A.M. Best Company (or another rating that we reasonably designate if A.M. Best Company no longer publishes the Key Rating Guide) and must be licensed to do business in the state in which the dermani MEDSPA® is located. In addition, you must arrange for the PC to obtain and maintain professional liability coverage. All liability and property damage policies must name us (dermani MEDSPA® Franchising LLC) and our parent company (LazCoz, LLC) as additional insureds and must provide that each policy cannot be cancelled unless we are given 30 days' prior written notice. We may periodically increase required coverage limits or require additional or different coverage to reflect inflation, identification of new risks, changes in the law or standards of liability, higher damage awards and other relevant changes in circumstances. You must deliver to us (and in the future maintain on file with us) valid and current certificates of insurance showing that all required insurance is in full force and effect.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 26–28)
What This Means (2025 FDD)
According to Dermani Medspa's 2025 Franchise Disclosure Document, franchisees must obtain and maintain insurance coverages and policies as prescribed in the manuals. The insurance policy must be issued by an approved issuer with a rating of at least "A" in the most recent Key Rating Guide published by A.M. Best Company, or another rating that Dermani Medspa reasonably designates if A.M. Best Company no longer publishes the guide. The issuer must be licensed to do business in the state where the Dermani Medspa is located. Additionally, the franchisee must ensure that the professional corporation (PC) obtains and maintains professional liability coverage.
The liability and property damage policies must name Dermani Medspa Franchising LLC and its parent company, LazCoz, LLC, as additional insureds. These policies must also provide that they cannot be canceled unless Dermani Medspa is given 30 days' prior written notice. Dermani Medspa has the right to periodically increase required coverage limits or require additional or different coverage to reflect inflation, new risks, changes in the law or standards of liability, higher damage awards, and other relevant changes.
Franchisees are required to deliver and maintain valid and current certificates of insurance to Dermani Medspa, demonstrating that all required insurance is in full force and effect. This ensures that Dermani Medspa franchisees maintain adequate insurance coverage to protect both their business and the franchisor from potential liabilities and risks, and that the franchisor is kept up to date on the status of the franchisee's insurance policies.