What specific items must the business interruption insurance for a Devon Creek franchise cover?
Devon_Creek Franchise · 2024 FDDAnswer from 2024 FDD Document
- 15.4 Increase in Coverage**.** The levels and types of insurance stated herein are minimum requirements. Franchisor reserves the right to raise the required minimum requirements for any type of insurance or add additional types of insurance requirements as Franchisor deems reasonably prudent to require. Within thirty (30) days of any such required new limits or types of coverage, Franchisee must submit proof to Franchisor of Franchisee's coverage pursuant to Franchisor's requirements.
- 15.5 Additional Insured. All required insurance policies shall name Franchisor, Licensor and their affiliates and their members, officers, agents and employees as additional insureds as their interests may appear. All public liability policies shall contain a provision that the additional insureds, although named as insureds, shall nevertheless be entitled to recover under such policies on any loss caused by Franchisee or Franchisee's servants, agents or employees.
Source: Item 22 — CONTRACTS (FDD page 45)
What This Means (2024 FDD)
Based on the 2024 Franchise Disclosure Document, the FDD does not specify the exact items that Devon Creek's business interruption insurance must cover. However, the franchisee is required to maintain insurance policies, and Devon Creek has the right to increase the minimum requirements for any type of insurance or add additional types of insurance requirements as they deem reasonably prudent.
Within 30 days of any required new limits or types of coverage, the franchisee must submit proof of coverage to Devon Creek. All required insurance policies must name Devon Creek, its licensor, affiliates, members, officers, agents, and employees as additional insureds. Public liability policies must contain a provision that the additional insureds are entitled to recover under such policies for any loss caused by the franchisee or their staff.
It is important for a prospective franchisee to communicate with the franchisor to understand the specific coverage requirements for business interruption insurance, including the events or perils that must be covered, the required coverage amounts, and any specific endorsements or policy provisions that Devon Creek mandates. This information is crucial for ensuring that the franchisee obtains adequate insurance protection and complies with the franchisor's requirements.