What it does
CG 20 29 adds the scheduled person or organization as an additional insured, but only for their liability as grantor of a franchise to the named insured.
Who needs it
Franchisees in quick-service and casual dining, hotels, fitness centers, home services and retail. Franchise agreements almost always require it.
Key provisions and limits
- Schedule names the franchisor.
- Coverage applies only to the extent permitted by law.
- Contract-based limits: coverage is no broader than any contract requires, the most paid for the additional insured is the lesser of the contract-required amount or the policy limits, and the endorsement does not increase limits.
Quoting and selling notes
- Franchise agreements often specify minimum limits, primary wording and waiver of subrogation; check all requirements, not only the AI.
- Liquor-serving franchisees also need CG 34 02 on the liquor liability coverage part.
