What specific coverages are included in the commercial general liability insurance policy required for Even Hotels, according to Holiday's specifications?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
ncluding whether your hotel is newly constructed or being converted.
Note 14: The security deposits you must pay to utilities, lessors, and vendors or suppliers of other products or services will depend on the location of the hotel.
Note 15: Holiday's specifications for the amount and type of insurance coverage required are in paragraph 8.B of the License. If you fail to procure or maintain the insurance coverages and limits set forth in paragraph 8.B, Holiday will have the right and authority (but not the obligation) to procure such insurance at your cost, including any costs incurred by Holiday for procurement and maintenance of such insurance. Holiday currently requires that you obtain a commercial general liability insurance policy (including coverage for product liability, completed operations, contractual liability, host liquor liability and fire legal liability) and business automobile liability insurance policy (including hired and non-owned liability) with single limit coverage for personal and bodily injury and property damage of at least $15,000,000 per occurrence naming Holiday, its parents, subsidiaries and affiliates as additional insureds. In connection with all construction at the Hotel, you must require your general contractor to maintain commercial general liability insurance (including coverage for product liability, completed operations and contractual liability) and business automobile liability 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, Holiday's specifications for insurance coverage are detailed in paragraph 8.B of the license agreement. Even Hotels franchisees are required to obtain a commercial general liability insurance policy that includes specific coverages. This policy must include coverage for product liability, completed operations, contractual liability, host liquor liability, and fire legal liability.
In addition to the commercial general liability insurance, franchisees must also secure a business automobile liability insurance policy. This policy should include hired and non-owned liability coverage. Both the commercial general liability and business automobile liability insurance policies must have a single limit coverage of at least $15,000,000 per occurrence for personal and bodily injury and property damage. Holiday, its parents, subsidiaries, and affiliates must be named as additional insureds on these policies.
Furthermore, Even Hotels requires that the general contractor maintain commercial general liability insurance and business automobile liability insurance with limits of at least $15,000,000 per occurrence for personal and bodily injury and property damage, naming Holiday and its affiliates as additional insureds, in connection with all construction at the Hotel. The franchisee is also required to maintain employment practices liability insurance with a minimum limit of $1,000,000, covering harassment, discrimination, and wrongful termination, including defense and indemnity costs, naming Holiday and its affiliates as additional insureds.