What information must be included in the certificates of insurance delivered to Spray Net?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
You must make timely delivery of certificates of all required insurance to us, each of which must contain a statement by the insurer that the policy will not be cancelled or materially altered without at least thirty (30) days' prior written notice to us.
You must buy insurance only from carriers rated A-VIII or better by A.M. Best and Company, Inc. (or similar criteria as we periodically specify), unless we designate specific carriers from which you must purchase coverage (in which case you may only purchase from the designated carrier(s)). We may periodically increase the amounts of coverage required under these insurance policies and/or require different or additional insurance coverage to reflect inflation, identification of new risks, changes in law or standards of liability, higher damage awards, changing economic conditions, or other relevant changes in circumstances. All insurance policies you purchase must name us and any affiliate(s) we designate as additional insureds and provide for thirty (30) days' prior written notice to us of a policy's material modification or cancellation.
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 provide certificates of all required insurance to Spray Net. These certificates must include a statement from the insurer guaranteeing that the policy will not be canceled or materially altered without at least thirty (30) days' prior written notice to Spray Net.
Spray Net also mandates that all insurance policies name Spray Net and any designated affiliates as additional insureds. These policies must also provide for thirty (30) days' prior written notification to Spray Net in the event of a material modification or cancellation of the policy.
Spray Net requires franchisees to procure specific types and amounts of insurance coverage, including commercial general liability insurance of not less than $2,000,000 per occurrence for bodily injury and $2,000,000 per occurrence for property damage. Other required insurances include fire, vandalism, and extended coverage insurance, auto insurance, employer's liability and workers' compensation insurance, business interruption insurance, and any insurance necessary to provide coverage under the indemnity provisions in Section 11 of the Franchise Agreement. Franchisees must buy insurance only from carriers rated A-VIII or better by A.M. Best and Company, Inc. (or similar criteria as Spray Net periodically specifies), unless Spray Net designates specific carriers.