What are the specific obligations of a Monicals Pizza franchisee related to maintaining insurance coverage, as potentially detailed in Item 9 and required to protect the business from potential liabilities?

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15. INSURANCE

15.1 Types and Amounts of Coverage

Within ninety (90) days of the Effective Date, but in no event later than the commencement of operations, Franchisee shall procure and thereafter maintain in full force and effect during the term of this Agreement, the insurance listed below. The liability policy including any applicable umbrella/excess policies shall expressly name Franchisor as an additional insured. In addition to any other insurance that may be required by applicable law, or by any lender or lessor, Franchisee shall procure:

• 15.1.1 "Special Form" (all risk) property insurance coverage on all assets including inventory, furniture, fixtures, equipment, supplies, and leasehold improvements and betterments and other property used in the operation of the Franchised Restaurant at full replacement cost;
• 15.1.2 Workers' compensation insurance that complies with the statutory requirements of the state in which the Franchised Restaurant is located and employer liability coverage with a minimum limit of ONE MILLION DOLLARS ($1,000,000.00) or, if higher, the statutory minimum limit as required by applicable state law;
• 15.1.3 Commercial general liability insurance against claims for bodily and personal injury, death and property damage caused by, or occurring in conjunction with, the operation of the Franchised Restaurant, including premises and operations, contractual liability, products completed operations and personal and advertising injury, with minimum limits of liability for each type of insurance of ONE MILLION DOLLARS ($1,000,000.00) per occurrence and TWO MILLION DOLLARS ($2,000,000.00) general aggregate or higher if required by any landlord or lease agreement or by state law
• 15.1.4 Liquor liability/dram shop policy with a minimum liability coverage of ONE MILLION DOLLARS ($1,000,000.00) per occurrence and TWO MILLION DOLLARS ($2,000,000.00) in the aggregate or, if higher, the statutory minimum limit required by applicable state law;
• 15.1.5 Automobile liability insurance including liability coverage for autos owned, hired or borrowed, if applicable, by Franchisee, and liability coverage for autos owned by others ("nonowned auto" coverage) with limits of not less than ONE MILLION DOLLARS ($1,000,000.00) per occurrence for bodily injury and property damage combined;
• 15.1.6 Umbrella excess liability insurance with a minimum liability coverage of TWO MILLION DOLLARS ($2,000,000.00) (umbrella excess liability must provide coverage in excess of commercial general liability, liquor liability, automobile liability and employers liability limits);
• 15.1.7 Business interruption insurance in amounts and with terms acceptable to Franchisor;
  • 15.1.8 Cyber insurance policy with a minimum liability coverage of $1,000,000:
• 15.1.9 Restaurant Recovery Insurance (or equivalent) due to Food Borne Illness with a minimum liability coverage of $1,000,000: and

15.1.10 Such insurance as necessary to provide coverage under the indemnity provisions set forth in Section 21.3.

Franchisee shall require each of its employees, who at any time, in connection with off-site delivery services, operates a vehicle which is owned by a person other than Franchisee, to maintain insurance insuring the employee's liability as driver of the vehicle in an amount no less than the minimum amount required by law, and Franchisee shall require and maintain at the Franchised Restaurant evidence of such insurance which evidence Franchisee shall provide to Franchisor upon request. Franchisee expressly waives and releases Franchisor and its affiliates and successors, and the respective officers, directors, shareholders, employees and agents of Franchisor and such successors and affiliates, from any obligation or responsibility with respect to any claim asserted, or which may be asserted, by a third party or parties, arising out of or relating to Franchisee's conduct of off–site delivery services.

15.2 Future Increases

Franchisor has the right to reasonably increase the minimum liability protection requirement annually and require different or additional insurance coverage(s) to reflect inflation, changes in standards of liability, future damage awards or other relevant changes in circumstances.

15.3 Carrier Standards

Such policies shall be written by an insurance company approved by the state insurance department in the state in which Franchisee operates and having at least an "AVII" Rating Classification as indicated in the latest issue of A.M. Best's Key Rating Guide. Although A.M. Best groups "A" and "A-" in the same classification, Franchisor demands an "AVII" rating.

15.4 Evidence of Coverage

Franchisee's obligation to obtain and maintain the foregoing policies shall not be limited in any way by reason of any insurance that may be maintained by Franchisor, nor shall Franchisee's performance of this obligation relieve it of liability under the indemnity provisions set forth in Section 21.3. Franchisee shall provide, annually, and at least ten (10) days prior to the scheduled expiration of each such policy, certificates of insurance showing compliance with the foregoing requirements for the following twelve (12) month period. Such certificates shall state that said policy or policies shall not be canceled or altered without at least thirty (30) days' prior written notice to Franchisor.

15.5 Failure to Maintain Coverage

Should Franchisee not procure and maintain insurance coverage as required by this Agreement, Franchisor has the right (but not the obligation) to immediately procure such insurance coverage and to charge the premiums to Franchisee, which charges, together with a reasonable fee for expenses incurred by Franchisor in connection with such procurement, shall be payable by Franchisee immediately upon