factual

What minimum limits are required for employer's liability insurance for Even Hotels franchisees?

Even_Hotels Franchise · 2025 FDD

Answer from 2025 FDD Document

parents, subsidiaries and affiliates as additional insureds. Holiday also requires you to maintain employment practices liability insurance (including coverage for harassment, discrimination and wrongful termination and covering defense and indemnity costs). Holiday also requires that you obtain employment practices liability insurance with a limit of $1,000,000 per occurrence and in the aggregate. The holder of the liquor license must maintain liquor liability insurance with single limit coverage for personal and bodily injury and property damage of at least $15,000,000 for each occurrence naming Holiday and its parents, subsidiaries and affiliates, (and the Licensee if applicable) as additional insureds. You must also obtain: (i) employer's liability with minimum limits of $1,000,000 per occurrence; (ii) worker's compensation insurance; (iii) business interruption insurance to ensure the royalties, Service Contributions and any other sums payable to us (the policy should insure against 'all risks' of physical loss or damage, and be endorsed to provide for payments to be made directly to Holiday). The estimated costs for liability insurance premiums will vary depending on such factors as jurisdiction, exposures, type of Hotel, loss history, location and size of Hotel, payroll size and other factors.

"Private Network" Connecting Services:

You must purchase "private network" connecting services, or another solution Holiday specifies, for use in communicating with the Reservation System from Holiday's designated vendor.

Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 59–68)

What This Means (2025 FDD)

According to Even Hotels' 2025 Franchise Disclosure Document, franchisees must obtain employer's liability insurance with minimum limits of $1,000,000 per occurrence. This insurance is in addition to other required coverages, such as general liability, business automobile liability, and worker's compensation insurance.

The franchisor, Holiday, also has the right, but not the obligation, to procure insurance at the franchisee's cost if the franchisee fails to maintain the required insurance coverages and limits. This includes any costs incurred by Holiday for procurement and maintenance of such insurance.

The estimated costs for liability insurance premiums will vary depending on factors such as jurisdiction, exposures, type of hotel, loss history, location and size of the hotel, and payroll size. It is important for prospective franchisees to factor in these insurance costs when evaluating the overall investment required to open and operate an Even Hotels franchise, as these costs can vary significantly based on individual circumstances.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.