What will Management Company provide to Healthsource Chiropractic regarding insurance?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
8.6 In accordance with Management Company's obligations in Section 2.1(i), Management Company will provide Licensed Provider with (i) certificates and copies of additional insured endorsements evidencing the existence of such insurance concurrently with execution of this Agreement and from time to time upon demand of Management Company, and (ii) upon Licensed Provider's request stating the reason therefor (such as a claim has been filed), copies of the insurance policies, along with all applicable endorsements.
8.7 Notwithstanding the existence of such insurance, Licensed Provider is and will be responsible for all loss or damage and contractual liability to third persons originating from or in connection with the performance of the Licensed Provider Services or the operation of the Clinic, and for all claims or demands for damages to property or for injury, illness or death of persons directly or indirectly resulting therefrom.
8.8.
Management Company must maintain any and all insurance coverage in such amounts and under such terms and conditions as may be required in connection with the lease or purchase of the Premises.
- 8.9.
The insurance Management Company requires is for its own protection.
Licensed Provider should consult with Licensed Provider's own insurance agents, brokers, and attorneys to determine what types of coverages and what level of insurance protection Licensed Provider may need or desire, in addition to the coverages and minimum limits specified by Management Company.
Licensed Provider's obligation to maintain insurance coverage as described in this Agreement will not be reduced in any manner by reason of any separate insurance Management Company maintains on Management Company's own behalf, nor will Management Company's maintenance of Management Company's insurance relieve Licensed Provider of any obligations under this Agreement.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to the 2025 Healthsource Chiropractic Franchise Agreement, the Management Company has specific insurance-related responsibilities. The Management Company will provide the Licensed Provider with certificates and copies of additional insured endorsements evidencing the existence of such insurance concurrently with the execution of the agreement. These certificates and copies will also be provided from time to time upon demand of Management Company. Additionally, upon the Licensed Provider's request stating the reason, such as a claim that has been filed, the Management Company will provide copies of the insurance policies, along with all applicable endorsements.
Licensed Providers are required to maintain commercial general liability insurance and malpractice insurance. The commercial general liability insurance policy must be an "occurrence" policy and must name Management Company, HealthSource, and their respective owners, directors, employees, agents, and affiliates, as an additional insured on a primary and noncontributory basis. The malpractice policy for each doctor providing the Licensed Provider Services and/or working at the Clinic must be endorsed, to the fullest extent possible, to name Management Company, HealthSource and their respective owners, directors, employees, agents, and affiliates, as an additional insured.
It is important to note that if any of these policies are written on a "Claims Made" basis, the Licensed Provider must purchase and maintain unlimited tail coverage that remains in effect following the termination or expiration of the agreement and/or such policy. Despite the existence of such insurance, the Licensed Provider remains responsible for all loss, damage, and contractual liability to third persons originating from or in connection with the performance of the Licensed Provider Services or the operation of the Clinic. The insurance that the Management Company requires is for its own protection.
Prospective franchisees should consult with their own insurance agents, brokers, and attorneys to determine what types of coverages and what level of insurance protection they may need or desire, in addition to the coverages and minimum limits specified by the Management Company. The Licensed Provider's obligation to maintain insurance coverage will not be reduced by reason of any separate insurance Management Company maintains on its own behalf, nor will Management Company's maintenance of its insurance relieve Licensed Provider of any obligations under the agreement.