Obtaining Business Insurance

Obtaining Business Insurance

All chartered Vanderburgh House businesses are required to obtain insurance coverage for their business. This coverage can be obtained through a licensed insurance agency or brokerage in the state in which the Operator will conduct business. Operators maintain coverage for general liability, professional liability, and other perils. The Operator’s policy will list Vanderburgh House as additionally insured, protecting both parties in the event of a covered loss.

Typically our Operators designate Vanderburgh Communities as their authorized representative in obtaining insurance and pay monthly policy payments in escrow with Vanderburgh Communities.

General Insurance Requirements

You currently are required to maintain the following insurance coverage pursuant to your Charter Agreement:

(1) comprehensive general liability coverage against claims for bodily and personal injury, death, and property damage caused by or occurring in conjunction with the operation of your Vanderburgh House Franchise or your conduct of business pursuant to the Vanderburgh House Franchise Agreement under one or more policies of insurance containing minimum liability coverage of $1,000,000 per occurrence and $2,000,000 aggregate;

(2) business property insurance at replacement cost;

(3) business interruption and rent insurance for a period adequate to re-establish normal business operations, but not less than $1,000,000 per occurrence;

(4) an umbrella liability insurance policy with minimum liability coverage of $2,000,000;

(5) employer’s liability of $1,000,000 per incident and Workers’ Compensation or other employer’s liability insurance as well as such other insurance as may be required by statute or rule in the state in which your Vanderburgh House Franchised Business is located; Employment practices, business interruption, errors and omissions, and cyber security.

(6) professional liability of $1,000,000 per incident and $1,000,000 aggregate; and

(7) any other insurance that we may require in the future or that may be required according to the terms of your lease. You must maintain all required policies in force during the entire term of the Franchise Agreement and any renewal terms. We may periodically increase or decrease the amounts of coverage required under these insurance policies and require different or additional kinds of insurance at any time to reflect inflation, identification of new risks, changes in law or standards of liability, higher damage awards, or other relevant changes in circumstances. Each insurance policy must name us (and, if we request, our directors, employees or shareholders) as additional insured’s and must provide us with 30 days’ advance written notice of any material modification, cancellation or expiration of the policy.

Insurance Company Approval

The insurance company that you select must be approved by Vanderburgh House. A copy of the insurance policy the meets all of the above conditions must be delivered to us within thirty days’ prior to your opening day. We must be copied on all correspondence with your insurance company.

Shared Insurance

We invite our Operators to share insurance as a member of our collaborative. This requires far less paperwork and saves significant cost. Speak with a Vanderburgh House representative for more information.