What is the requirement for the insurance carrier providing coverage for a Gokhale Method franchise?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
- 13.1. Minimum Insurance Requirements. You shall procure, prior to the commencement of any activities or operations under this Agreement, and shall maintain in full force and effect at all times during the Term of this Agreement (and for such period thereafter as is necessary to provide the coverages required hereunder for events having occurred during the Term of this Agreement), at your expense, an insurance policy or policies protecting you, us, and the parties' respective officers, directors, partners, agents and employees against any demand or claim with respect to personal injury, death or property damage, business interruption, or any loss, liability or expense whatsoever arising or occurring upon or in connection with the Franchised Business, including, but not limited to, comprehensive general liability insurance, property insurance (including, but not limited to, fire, vandalism, and malicious mischief insurance for the replacement value of the Franchised Business and its contents), casualty insurance, business interruption insurance, statutory workers' compensation insurance, employer's liability insurance, product liability insurance, and automobile insurance coverage for all vehicles used in connection with the operation of the Franchised Business. Such policy or policies shall be written by a responsible carrier or carriers acceptable to us and shall provide at least the types and minimum amounts of coverage specified in the Teachers' Manual or Policy Statements. Furthermore, for franchisees located within the United States such policy or policies shall name us and our subsidiaries and Affiliates as additional insureds. We shall have the right, from time to time, to make such changes in minimum policy limits and endorsements as we may determine in our reasonable discretion.
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
According to the 2024 Gokhale Method Franchise Disclosure Document, franchisees must secure insurance policies from a "responsible carrier or carriers acceptable" to Gokhale Method. These policies must be in effect before the commencement of any activities or operations under the Franchise Agreement and must be maintained throughout the term of the agreement and beyond, as necessary to cover events occurring during the term.
The required insurance coverage must protect Gokhale Method, its subsidiaries and affiliates, the franchisee, and their respective officers, directors, partners, agents, and employees against various claims. These include personal injury, death, property damage, business interruption, loss, liability, or expense arising from the Franchised Business. Specific types of insurance include comprehensive general liability insurance, property insurance (covering fire, vandalism, and malicious mischief), casualty insurance, business interruption insurance, statutory workers' compensation insurance, employer's liability insurance, product liability insurance, and automobile insurance for all vehicles used in the business.
The insurance policies must name Gokhale Method and its subsidiaries and affiliates as additional insureds if the franchisee is located within the United States. Gokhale Method retains the right to modify the minimum policy limits and endorsements as it deems necessary. Additionally, all public liability and property damage policies must include a provision that allows Gokhale Method to recover under such policies, even though they are named as an insured.