What evidence of insurance must an Even Hotels licensee furnish to IHG during the license term?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
At all times during the License Term, Licensee will furnish to IHG certificates of insurance evidencing the term and limits of coverage in force, names of applicable insurers and persons insured. Revised certificates of insurance shall be forwarded to IHG each time a change in coverage or insurance carrier is made by Licensee, and/or upon renewal of expired coverages. At IHG's option, Licensee may be required to provide certified insurance policy copies. If Licensee fails to procure or maintain the insurance coverages and limits set forth in paragraph 8.B., IHG will have the right and authority (but not the obligation) to procure such insurance at Licensee's cost, including any costs incurred by IHG for procurement and maintenance of such insurance.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, franchisees must provide IHG (InterContinental Hotels Group) with specific evidence of insurance coverage throughout the entire license term. This evidence comes in the form of certificates of insurance, which detail the coverage terms, limits, the insurance companies involved, and the insured parties. These certificates must be provided to IHG whenever there are changes to the coverage, insurance carrier, or upon renewal of expired policies. IHG also has the option to request certified copies of the insurance policies themselves.
Specifically, before construction begins on a new development Even Hotels location, the franchisee must submit evidence of the required insurance to IHG. This is a prerequisite before IHG will allow construction to commence. Furthermore, before IHG grants written approval to open and operate the hotel as part of the Brand System, the franchisee must have submitted all required insurance certificates (and policy copies, if requested) to IHG.
If a franchisee fails to maintain the required insurance coverage and limits, IHG has the right, but not the obligation, to procure the necessary insurance at the franchisee's expense. This includes any costs IHG incurs in obtaining and maintaining the insurance. The franchisee is responsible for ensuring that the insurance policies are written on a fully insured basis, and any deductibles or self-insured retentions are subject to IHG's approval on a case-by-case basis. This requirement ensures that Even Hotels properties maintain adequate insurance coverage, protecting both the franchisee and the franchisor from potential liabilities and financial losses.