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If not, you are opening yourself up to potential risk. Liability insurance protects only the named insured and does not extend to the franchisor unless there is a specific endorsement made to the policy. Without an endorsement clearly designating the franchisor as an additional insured coverage will not confer beyond the named insured.

Your FA should require each franchisee to obtain such an endorsement, clearly designating you as the additional insured. Doing so will then grant you rights under the policy which could include the right to defense and the right to be indemnified from a loss for a covered claim.

Besides not requiring an additional insured endorsement, some FAs inadvertently limit the coverage needed to fulfill this requirement. The endorsement required should be of the broadest &ldquo;form&rdquo; and not limited to only vicarious liability.

Many insurance agencies not familiar with franchising fail to understand the importance of the additional insured endorsement. This often times results in misapplication or coverage gaps, increasing the franchior&rsquo;s risk unnecessarily. The cost of adding an endorsement is minimal, if not free, making it a low impact requirement for franchisee.

This is where EZ CERT becomes your safety net. Our understanding of the unique relationship between franchisee and franchisor is our differentiator. With <a href="http://www.certmgmt.com/practice_areas?utm_source=1851franchise.com&utm_medium=article&utm_campaign=additional-insured-endorsements-why-your-franchise-should-require-it-2703805" target="_blank" rel="nofollow" target="_blank">our premier certificate tracking solutions</a>, we check for appropriate endorsements and see that coverages are applied correctly, ensuring compliance.

Our proactive approach to compliance and ability to provide on the spot insurance solutions to franchisees protects your brand in ways traditional insurance agencies can&rsquo;t. Don&rsquo;t open your franchise up to unnecessary risks, we are here to help.

For more information on our complementary service, <a href="http://www.certmgmt.com/contact?utm_source=1851franchise.com&utm_medium=article&utm_campaign=additional-insured-endorsements-why-your-franchise-should-require-it-2703805" target="_blank" rel="nofollow" target="_blank">click here</a>.

Additional Insured Endorsements: Why Your Franchise Should Require It

1851 Franchise

Does your Franchise Agreement (FA) require the franchise be named as an additional insured?

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Additional Insured Endorsements: Why Your Franchise Should Require It

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