Required Insurance - OPM Section 100.1

100.1 Required Insurance  

       In addition to any insurance required of Franchisee by the lease or sublease of the Premises, Franchisee shall procure and maintain in effect throughout the term of the Franchise Agreement insurance coverage issued by companies admitted and licensed to do business in the state where the Premises are located, satisfactory to Mr. Pickle’s Franchise Systems, LLC and has an A.M. Best Company rating of “A-,” Class “VII” or better.
      No such policy shall include a property or liability deductible of more than Five Thousand Dollars ($5,000.00) per occurrence. The policies for Comprehensive or Commercial General Liability insurance, and for Employment Practices Liability insurance required below shall each include an endorsement naming Mr. Pickle’s Franchise Systems, LLC, its affiliates (including the Affiliate), and their respective officers, directors, and employees as additional insureds (see below) on a primary basis and providing for severability of interests so that the acts of Franchisee shall not be imputed to the Mr. Pickle’s Franchise Systems, LLC, its affiliates (including the Affiliate), and their respective officers, directors, and employees.

Franchisee’s insurance policy or policies shall provide at least the following coverage for each franchised location subject to change by way of modified requirements in the Manual:  

1.Comprehensive or Commercial General Liability insurance on an occurrence coverage form. The limits of liability shall not be less than:  

• $2,000,000 each occurrence (combined single limit for bodily injury and property damage);  
• $2,000,000 for personal and advertising injury liability.  
• $2,000,000 aggregate on products and completed operations.  
• $2,000,000 general aggregate.

Per location aggregate (applies to owners with more than 1 location)  

Required insurance coverage limits may be provided through a combination of primary and excess/umbrella policies. If coverage limits are provided through excess/umbrella liability policies, then a schedule of underlying insurance listing the policy information for all underlying insurance policies, including proof that the excess/umbrella insurance follows form must be provided upon request  

2. Hired and Non-Owned Automobile Liability insurance providing a Combined Single Limit for bodily injury and property damage of One Million Dollars ($1,000,000.00) per occurrence with no aggregate limit. This insurance may be provided as part of the General Liability policy required in subsection (1) above or the Automobile Liability policy required in subsection (3) below.  

3. If the personal vehicle of the franchise owner is being used 50% or more on company business, it should be placed on their commercial auto policy instead of their personal auto policy. If the vehicle is registered under the personal name, it should be leased to the company for one year or more in order to insure the vehicle under the commercial policy. For franchise owners that use their personal vehicle for business occasionally we recommend a limit of $100,000 per person and $300,000 per accident under the personal auto policy.  

4. Special Form (formerly called "All Risk") Property and Business Income/Interruption insurance providing:  

a. Property Insurance covering the full replacement cost of all of Franchisee’s improvements, furnishings, equipment, and inventory used in the Franchised Business. In addition, all items leased under the Decor Lease to the Franchisee shall be insured for the value of the items as stated in the lease and shall name the Affiliate as the loss payee.  At this time, we require a minimum of $150,000 coverage for Property insurance.

b. Business Income/Interruption insurance (including Extra Expense) covering the actual loss sustained without any dollar limit, for not less than twelve (12) months.  

**You are required to submit proof of Property and Business Income/Interruption insurance coverage (Acord 27) to MPFS along with the Certificate of Insurance (Acord 25).  

5. Employment Practices Liability insurance: One Hundred Thousand Dollar ($100,000.00) limit (with no co-insurance) for each claim and in the aggregate retention cannot exceed Ten Thousand Dollars ($10,000.00) per claim unless approved by Mr. Pickle’s Franchise Systems, LLC. This insurance must include third party coverage to include claims brought by persons other than employees. Franchisee shall maintain and retain the required Employment Practices Liability Insurance for at least twelve (12) months after Franchisee discontinues operating the Franchised Business.  

6. Such other insurance as may be required by any laws, including but not limited to Workers' Compensation insurance with statutory limits and employers Liability insurance with a limit for Bodily Injury by Accident of One Million Dollars ($1,000,000.00) for each accident and a limit for Bodily Injury by disease of One Million Dollars ($1,000,000.00) for each employee.  

Franchisee shall supply Mr. Pickle’s Franchise Systems, LLC. with Certificates of Insurance currently in force, which shall reflect at least the above coverage, and shall also provide: All required insurance policies shall be renewed annually, and new Certificates of Insurance and copies of endorsements as required above shall be provided to Mr. Pickle’s Franchise Systems, LLC. not less than thirty (30) days prior to expiration of each policy.  

Franchisee understands and acknowledges that Mr. Pickle’s Franchise Systems, LLC may, on notice and in its sole discretion, raise, lower or otherwise change the amounts and types of insurance required in Mr. Pickle’s Operations Procedure Manual (OPM) and Franchisee shall comply with such changed requirements upon expiration of the policies in force at the time Mr. Pickle’s gave notice of the changes but in no event later than sixty (60) days after such notice.  

Certificates must list Additional Insured as:
Mr. Pickle’s Franchise Systems, LLC. 
9332 E. Raintree Drive, Suite 120, Scottsdale, AZ 85260 and respective officers, directors, and employees.  

Forms Required to submit to MPFS each renewal for each company/shop:
Acord 25 - Certificate of Insurance 
Acord 27 - Property and Business Income/Interruption Insurance  

Submit proof of coverage to [e-mail]