Besides workers' compensation, what other employer's liability insurance does Spray Net require?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
-
- Employer's liability, workers' compensation insurance and such other insurance as may be required by statute or rule of the state or locality in which the Franchised Business is located and operated;
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 33–36)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, franchisees must obtain employer's liability insurance, as well as workers' compensation insurance. The specific requirements for these policies are dictated by the statutes or rules of the state or locality where the franchised business operates. This means the exact type and amount of coverage may vary depending on the franchisee's location.
Spray Net also mandates several other types of insurance coverage. These include commercial general liability insurance with a minimum of $2,000,000 per occurrence for both bodily injury and property damage, fire, vandalism, and extended coverage insurance to cover the full replacement value of the business premises, and auto insurance with liability coverage of $2,000,000 per year.
Additionally, Spray Net requires business interruption insurance with terms acceptable to them and any insurance necessary to fulfill the indemnity provisions outlined in Section 11 of the Franchise Agreement. Franchisees must secure insurance from carriers with an A-VIII rating or better from A.M. Best and Company, unless Spray Net designates specific carriers. Spray Net retains the right to increase coverage amounts or require different or additional insurance to reflect various factors, such as inflation or changes in law. All policies must name Spray Net as an additional insured and provide 30 days' notice for any material modification or cancellation.