Against what casualties and contingencies must Epcon Communities' Debtor maintain insurance?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
The Debtor will maintain with financially sound and reputable insurers insurance with respect to its properties and business against such casualties and contingencies as shall be in accordance with general practices of businesses engaged in similar activities in similar geographic areas.
Franchisee shall at all times during the term of this Agreement, and at its own expense, keep in force by advance payment of premium general liability insurance in an amount not less than One Million Dollars ($1,000,000.00) per occurrence and in the amount of not less than Two Million Dollars ($2,000,000.00) per Project annual aggregate, arising out of a single accident, and with a deductible or self-insured retention on any such policy of not greater than One Thousand Dollars ($1,000.00), or such other amounts of coverage and self-insurance as Franchisor may specify from time to time, insuring Franchisee against any liability that may accrue by reason of the development by Franchisee of Project(s).
Such policy shall include coverage for liability arising from premises-operations, independent contractors and products-completed operations.
The policy shall not contain any restrictive endorsements or policy language which excludes coverage for residential construction, work performed by subcontractors on your behalf, or liability assumed under construction contracts.
The policy shall name Epcon Communities Franchising, LLC as an additional insured, using ISO Additional Insured Endorsement CG2029 (04-13 or 12-19) or its equivalent which provides premises and completed operations coverage.
Franchisee shall carry workers compensation insurance including an employer's liability limit of $500,000, and commercial auto liability (primary) providing limits of at least $1,000,000.00 each occurrence, combined single limits or in such other amounts and terms of coverage as Franchisor may specify from time to time.
Franchisee shall also carry Umbrella/Excess Liability Insurance written on an "occurrence," not a "claimsmade" basis, providing coverage excess of the underlying employer's liability, commercial general liability, and commercial automobile liability insurance, on terms at least as broad as the underlying coverage, with limits of not less than $5,000,000 per occurrence and in the annual aggregate.
All policies of insurance to be maintained by Franchisee shall name the Franchisee and all Project entities as named insureds and contain a separate endorsement naming Franchisor as an additional insured.
Source: Item 23 — RECEIPTS (FDD pages 86–280)
What This Means (2025 FDD)
According to the 2025 FDD, Epcon Communities' Debtor must maintain insurance with financially sound and reputable insurers regarding its properties and business. The insurance must cover casualties and contingencies in accordance with general practices of businesses engaged in similar activities in similar geographic areas.
In addition to the above, the franchisee must keep in force general liability insurance with a minimum of $1,000,000.00 per occurrence and $2,000,000.00 per project annual aggregate, arising out of a single accident, and with a deductible or self-insured retention on any such policy of not greater than $1,000.00. This insurance should cover liability arising from premises-operations, independent contractors, and products-completed operations and not exclude coverage for residential construction or work performed by subcontractors. Epcon Communities Franchising, LLC must be named as an additional insured.
The franchisee is also required to carry worker's compensation insurance including an employer's liability limit of $500,000, and commercial auto liability (primary) providing limits of at least $1,000,000.00 each occurrence, combined single limits. Furthermore, the franchisee must carry Umbrella/Excess Liability Insurance written on an "occurrence," not a "claimsmade" basis, providing coverage excess of the underlying employer's liability, commercial general liability, and commercial automobile liability insurance, on terms at least as broad as the underlying coverage, with limits of not less than $5,000,000 per occurrence and in the annual aggregate.
All insurance policies must name the franchisee and all Project entities as named insureds and contain a separate endorsement naming Epcon Communities as an additional insured. The insurance must be placed with an insurance carrier or carriers with an A.M. Best's rating of "A-" or better and an A.M. Best's Class rating of "x" or better, duly licensed in the state in which the Project is located, or be otherwise approved in writing by Epcon Communities. Epcon Communities requires thirty days written notice before any policy is canceled, materially altered, or non-renewed. Certificates of insurance must be provided to Epcon Communities at least thirty days prior to the expiration of any policy.