Franchisee shall obtain and maintain insurance policies in the types and amounts as specified by Digital South in the Manual. If not specified in the Manual, Franchisee shall maintain at least the following insurance coverage:

(i) “Special” causes of loss coverage forms, including fire and extended coverage, crime, vandalism, and malicious mischief, on all property of the Business, for full repair and replacement value (subject to a reasonable deductible);

(ii) Business interruption insurance (with extra expense) covering at least 12 months of income;

(iii) Commercial General Liability insurance, including products liability coverage, and broad form commercial liability coverage, written on an “occurrence” policy form in an amount of not less than $1,000,000 single limit per occurrence and $2,000,000 aggregate limit;

(iv) Employment Practices Liability insurance coverage in an amount of not less than $1,000,000;

(v) Business Automobile Liability insurance including owned, leased, non-owned and hired automobiles coverage in an amount of not less than $1,000,000; and

(vi) Workers Compensation coverage as required by state law.

(b) Franchisee’s policies (other than Workers Compensation) must (1) list SD Franchise and its affiliates as an additional insured, (2) include a waiver of subrogation in favor of Digital South and its affiliates, (3) be primary and non-contributing with any insurance carried by Digital South or its affiliates, and (4) stipulate that Digital South shall receive 30 days’ prior written notice of cancellation.

(c) Franchisee shall provide Certificates of Insurance evidencing the required coverage to Digital South prior to opening and upon annual renewal of the insurance coverage, as well as at any time within 15 days after request by Digital South.

Please email COI to: Sherie@sd4d.com