Besides business property, business interruption, employer liability, employment practices, automobile (trucks & trailers), and workers compensation, what other types of insurances are Devon Creek franchisees required to maintain?
Devon_Creek Franchise · 2024 FDDAnswer from 2024 FDD Document
to insured and uninsured claims.
You must obtain the following insurance coverages:
Liability. Comprehensive general liability insurance, including errors and omissions coverage, personal and advertising injury coverage, and in the form of a general liability rider or as a separate policy, in the amount of at least One-Million Dollars ($1,000,000) per occurrence and Two-Million Dollars ($2,000,000) in the aggregate; Coverage must include, but shall not be limited to, liability arising out of bodily injury, property damage, premises, operations, products-completed operations, contractual liability, personal injury, advertising injury, where applicable snow removal, and:
- Business Property
- Business Interruption
- Employer Liability
- Employment Practices
- Automobile- Trucks & Trailers
- Workers Compensation
- Other Insurances- as required by local, state and federal laws; and by the landlord
- Insurance Carrier- Minimum rating of "A" by AM Best
Employment. Worker's compensation coverage in the limits required by state law or if no statutory minimum exist, $500,000 per occurrence in full compliance with the applicable laws, statutes, rules or regulations of the State(s) in which Franchisee is located.
Employer Liability. Employer Liability insurance in the amount of One Million Dollars ($1,000,000) per occurrence per employee.
Employment Practices. Employment Practices insurance in the amount of at least One Hundred Thousand Dollars ($100,000), shall be carried on all of Franchisee's employees, as well as such other insurance as may be required by statute or rule of the state in which the Franchised Business is located and operated.
Business Property. Business Property insurance should be in the amount of a least replacement cost.
Business Interruption. Business Interruption insurance should be in the amount of at least Twelve (12) months loss of income including coverage for the franchisor's royalty fees and co-insurance requirements.
Automobile. Commercial Vehicle insurance in the amount of at least a combined single limit for bodily and property damage of at least a One-Million Dollars ($1,000,000), or greater if required by state law.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 21–23)
What This Means (2024 FDD)
According to Devon Creek's 2024 Franchise Disclosure Document, franchisees must obtain comprehensive general liability insurance, including errors and omissions coverage, personal and advertising injury coverage. This coverage must be in the amount of at least $1,000,000 per occurrence and $2,000,000 in the aggregate. The coverage must include liability arising out of bodily injury, property damage, premises, operations, products-completed operations, contractual liability, personal injury, advertising injury, and where applicable, snow removal.
In addition to the specific insurance types listed, Devon Creek franchisees are also required to carry "Other Insurances" as required by local, state, and federal laws, as well as by their landlord. Franchisees must also carry Employment Practices insurance in the amount of at least $100,000 on all employees, as well as such other insurance as may be required by statute or rule of the state in which the Franchised Business is located and operated.
Devon Creek franchisees must ensure that their insurance carrier has a minimum rating of "A" by AM Best for liability insurance and "A-" by AM Best for other insurances. Devon Creek may update its required insurance policy from time to time, and franchisees are required to comply with any updated insurance policy within 30 days of receiving notice. It is important for prospective franchisees to understand these insurance requirements, as failure to maintain adequate coverage could result in a breach of the franchise agreement.