Who must Healthsource Chiropractic name as an additional insured on their commercial general liability insurance policy?

According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, the franchisee's commercial general liability insurance policy must name specific entities as additional insured. These include Management Company, HealthSource, and their respective owners, directors, employees, agents, and affiliates. This requirement ensures that these parties are protected under the franchisee's insurance policy for liabilities arising from the operation of the Healthsource Chiropractic clinic.

This requirement is fairly standard in franchising, as it protects the franchisor and related parties from potential liabilities related to the franchisee's business operations. By being named as additional insured, these parties can directly benefit from the franchisee's insurance coverage in the event of a claim. The policy must be an "occurrence" policy, meaning it covers incidents that occur during the policy term, regardless of when the claim is made.

Furthermore, the policy must be primary and noncontributory, meaning that the franchisee's insurance will be the first to respond to a claim, and the additional insured parties' own insurance policies will not be required to contribute. Franchisees should consult with their insurance providers to ensure that their policies meet these requirements and that all necessary parties are correctly listed as additional insured.