What is the minimum aggregate limit required for employment practices liability insurance for an Even Hotels franchise, and who must be named as additional insureds?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
ty insurance (including hired and nonowned liability) with limits of at least $15,000,000 per occurrence for personal and bodily injury and property damage naming Holiday, its parents, subsidiaries and affiliates as additional insureds. Holiday also requires you to maintain employment practices liability insurance (including coverage for
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 52–59)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, franchisees are required to maintain employment practices liability insurance with a minimum aggregate limit of $1,000,000. This insurance must include coverage for harassment, discrimination, and wrongful termination, and it must cover both defense and indemnity costs.
In addition to the minimum coverage requirements, the franchisee must name specific entities as additional insureds on the employment practices liability insurance policy. These entities include Holiday, SCH (presumably referring to Six Continents Hotels, Inc., the parent company), and their respective parents, subsidiaries, and affiliates.
This requirement ensures that Even Hotels and its related entities are protected from potential liabilities arising from employment-related claims against the franchisee. Prospective franchisees should factor in the cost of this insurance, which can vary based on factors such as location, payroll size, and loss history, when evaluating the overall investment required to open and operate an Even Hotels franchise.