Who should be named as a loss payee and additional insured on the Equipment insurance policies for Even Hotels?

According to Even Hotels's 2025 Franchise Disclosure Document, when obtaining equipment insurance, the franchisee (referred to as "Hotel" in this instance) must name HPFS (presumably a leasing or financing company) as both a loss payee and an additional insured on the insurance policies. This requirement ensures that HPFS's financial interest in the equipment is protected in case of loss or damage.

Naming HPFS as a loss payee means that in the event of an insured loss, the insurance proceeds will be paid to HPFS, up to the amount of their interest in the equipment. Being named as an additional insured provides HPFS with liability coverage under the franchisee's insurance policy, protecting them from potential lawsuits or claims related to the equipment.

This requirement is fairly standard in franchise agreements where equipment is financed or leased, as it safeguards the lender's or lessor's investment. The franchisee bears the responsibility for maintaining the insurance coverage and ensuring that HPFS is properly listed on the policies. Failure to comply with this requirement could potentially lead to a breach of the franchise agreement and possible financial repercussions for the franchisee.