Under what conditions can IHG procure insurance at the Even Hotels licensee's cost?
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, if a licensee fails to procure or maintain the required insurance coverages and limits, IHG has the right, but not the obligation, to procure such insurance at the licensee's cost. This includes any costs incurred by IHG for the procurement and maintenance of the insurance.
This means that as an Even Hotels franchisee, you are responsible for maintaining specific insurance coverage as outlined by IHG. These requirements include providing certificates of insurance to IHG, evidencing the term and limits of coverage, the names of insurers, and the persons insured. You must also forward revised certificates each time there is a change in coverage or insurance carrier, and/or upon renewal of expired coverages. IHG has the option to require certified insurance policy copies.
If you, as the franchisee, fail to meet these insurance obligations, IHG can step in to secure the necessary insurance. However, the cost of this insurance, along with any associated procurement and maintenance expenses, will be charged to you. This provision ensures that the Even Hotels brand is protected, but it also places the financial burden of non-compliance on the franchisee. It is crucial for prospective franchisees to understand and budget for these potential costs and to maintain open communication with IHG regarding insurance requirements to avoid incurring additional expenses.