What restrictions are prohibited in the endorsements or policy language of the Epcon Communities franchisee's general liability insurance?

According to the 2025 Epcon Communities Franchise Disclosure Document, the franchisee's general liability insurance policy must not contain certain restrictive endorsements or policy language. Specifically, the policy cannot exclude coverage for residential construction, work performed by subcontractors on the franchisee's behalf, or liability assumed under construction contracts.

This requirement ensures that Epcon Communities franchisees have comprehensive liability coverage for their construction projects. By prohibiting these specific exclusions, the policy protects the franchisee (and potentially Epcon Communities as an additional insured) from financial losses due to construction-related liabilities. This is particularly important in the construction industry, where accidents and disputes are relatively common.

The policy must 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. This requirement ensures that Epcon Communities is also protected under the franchisee's liability policy, which is a common practice in franchising to mitigate risk for the franchisor. Franchisees should carefully review their insurance policies to ensure compliance with these requirements, as failure to do so could result in a breach of the franchise agreement.