Who is responsible for the expense of the insurance policy required by Floors To Go?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
- 7.8.
Insurance.
Prior to commencement of business with us, you shall procure, at your sole expense, an insurance policy or policies acceptable to us protecting you and us against any loss, liability, or expense whatsoever from personal injury, death, or product liability arising from, or occurring upon, or in connection with such premises, or by reason of your operation of your Showroom.
You shall maintain such policy or policies in full force and effect during the term of this Agreement.
- a.
Your insurance policy shall cover those risks as usually insured against by persons operating like properties in localities where the property operated by you is located, including automobile insurance, in amounts sufficient to prevent you from becoming a coinsurer within the terms of the policy or policies in question.
- b.
The insurance afforded by the policy or policies respecting liability shall not be limited in any way by reason of any insurance, that may be maintained by us.
Source: Item 23 — RECEIPTS (FDD pages 47–204)
What This Means (2025 FDD)
According to Floors To Go's 2025 Franchise Disclosure Document, the franchisee is responsible for the expense of the insurance policy. The FDD states that prior to commencing business, the franchisee must procure, at their sole expense, an insurance policy that is acceptable to Floors To Go. This policy must protect both the franchisee and Floors To Go against any loss, liability, or expense from personal injury, death, or product liability arising from the operation of the franchisee's showroom.
The franchisee is required to maintain this insurance policy throughout the term of the Franchise Agreement. The policy should cover risks typically insured against by similar businesses in the franchisee's locality, including automobile insurance, in amounts sufficient to prevent the franchisee from becoming a coinsurer under the policy terms.
This requirement ensures that the franchisee bears the financial responsibility for insuring against potential risks associated with operating a Floors To Go showroom. It also protects Floors To Go from liabilities arising from the franchisee's operations. The franchisee must provide Floors To Go with a certificate of insurance annually to demonstrate compliance with these insurance requirements.