What minimum amount of advertising liability and contractual liability coverage per occurrence is required for insurance policies under The Standardx franchise agreement?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
e in a minimum amount of $2,000,000.00 per occurrence or the then-current minimum coverage amount designated by Hyatt. All insurance must by endorsement specifically name Hyatt and its Affiliates (and Hyatt's and their employees and agents) as additional insureds. Owner must purchase each policy from an insurance company reasonably acceptable to Hyatt. Either the insurer or Owner must provide at least thirty (30) days' prior written notice to Hyatt of any insurance policy's cancellation, non-renewal or material change. Owner must deliver to Hyatt a certificate of insurance (or certified copy of such insurance policy if Hyatt requests) evidencing the required coverages and setting forth the amount of any deductibles not less than ten (10) days after their respective inception dates. If Owner fails for any reason to procure or maintain the insurance required by this Agreement, Hyatt shall have the right and authority (although without any obligation to do so) to procure such insurance and to charge Owner the cost together with a reasonable fee for Hyatt's expenses. Section 8 shall survive termination or expiration of this Agreement.
9. Indemnification and Limitation of Liability.
- a. IF ANY, HYATT'S INDEMNIFICATION OBLIGATIONS IN THE FRANCHISE AGREEMENT ARE INCORPORATED BY THIS REFERENCE INTO THIS AGREEMENT.
- b. IF ANY, OWNER'S INDEMNIFICATION OBLIGATIONS IN THE FRANCHISE AGREEMENT ARE INCORPORATED BY THIS REFERENCE INTO THIS AGREEMENT.
- c. EXCEPT IN FULFILLMENT OF ANY INDEMNIFICATION OBLIGATIONS, IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER PARTY FOR SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES (INCLUDING, WITHOUT LIMI
Source: Item 18 — OTHER INCOME (LOSS), NET (FDD pages 187–399)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, franchisees must maintain insurance coverage, including advertising and contractual liability coverage. The minimum required amount is $2,000,000.00 per occurrence, or the then-current minimum coverage amount designated by Hyatt. All insurance policies must specifically name Hyatt and its affiliates as additional insureds through an endorsement.
Prospective The Standardx franchisees should understand that this insurance requirement is a significant ongoing expense. The franchisee is responsible for procuring and maintaining this insurance throughout the term of the agreement. Failure to do so allows Hyatt to procure the insurance and charge the franchisee for the cost, including a reasonable fee for expenses.
It is important for franchisees to purchase their insurance from a company reasonably acceptable to Hyatt. Furthermore, either the insurer or the franchisee must provide Hyatt with at least 30 days' prior written notice of any policy cancellation, non-renewal, or material change. Franchisees must also deliver a certificate of insurance (or a certified copy of the policy, if requested) to Hyatt, evidencing the required coverages and deductibles, no less than ten days after the policy's inception date. This ensures that The Standardx is protected against potential liabilities arising from the franchisee's operations.