What risks should the Floors To Go franchisee's insurance policy cover?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
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 the 2025 Floors To Go Franchise Disclosure Document, franchisees must obtain and maintain insurance policies that are acceptable to Floors To Go. These policies must protect both the franchisee and Floors To Go against any loss, liability, or expense resulting from personal injury, death, or product liability. This coverage should arise from or occur upon the premises or be connected with the operation of the franchisee's showroom.
The insurance policy should cover risks typically insured against by similar businesses in the franchisee's locality. This includes automobile insurance. The coverage amounts must be sufficient to prevent the franchisee from becoming a coinsurer under the terms of the policy.
The liability insurance provided by the franchisee's policy should not be limited by any insurance that Floors To Go may maintain. This ensures that the franchisee's coverage is primary and adequate, regardless of any additional coverage the franchisor might have. It is the franchisee's sole responsibility to cover the expense of the insurance policy.