Common use of Errors and Omissions Policy Clause in Contracts

Errors and Omissions Policy. Franchisee shall be included on Franchisor’s errors and omissions policy following the Effective Date, which will provide Franchisee with a significant savings on the annual cost of errors and omissions coverage. Franchisee will no longer need to maintain Franchisee’s own errors and omissions policy following the Effective Date. Franchisee shall pay Franchisee’s pro‐rata share of the cost of Franchisor’s master errors and omissions coverage once each year, which is currently estimated to be approximately $600. Payment for this errors and omission coverage occurs annually in February of each year.