What is the minimum required employment practices liability coverage for a 1 800 Packouts franchisee?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
ht to require you to use the software the TPA is requiring.
Insurance. You must obtain and maintain in force insurance coverage necessary to comply with all laws and as is customary for similar businesses in the state or jurisdiction in which the Franchised Business operates or as we may reasonably prescribe from time to time. We currently require you to maintain the following insurance coverage: (i) commercial general liability insurance ($1 million per occurrence, $2 million general aggregate limit, and $2 million products-completed operations limit, (ii) contractor's environmental liability ($1 million per occurrence and $2 million aggregate limit (aggregate may be shared with CGL policy)), (iii) property insurance (100% of replacement value of Facility and contents), (iv) bailee legal liability coverage ($1 million limit), (v) vehicle liability insurance ($1 million coverage, including hired and non-company owned auto coverage), (vi) workers' compensation coverage, (vii) cyber liability coverage ($1 million limit), (viii) employment practices liability coverage ($1 million limit), and (ix) excess liability coverage (over and above CGL, vehicle liability and employer liability) of $1 million. The insurance coverage must be maintained under one or more policies of insurance of the types and containing such terms and conditions and minimum liability protection in such amounts, as we specify and as are is
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 27–29)
What This Means (2025 FDD)
According to 1 800 Packouts's 2025 Franchise Disclosure Document, franchisees must maintain employment practices liability coverage with a minimum limit of $1 million. This insurance protects the franchisee against claims related to employment practices such as discrimination, wrongful termination, or harassment.
1 800 Packouts also mandates several other insurance coverages, including commercial general liability insurance ($1 million per occurrence, $2 million general aggregate limit, and $2 million products-completed operations limit), contractor's environmental liability ($1 million per occurrence and $2 million aggregate limit), property insurance (100% of replacement value), bailee legal liability coverage ($1 million limit), vehicle liability insurance ($1 million coverage), workers' compensation coverage, cyber liability coverage ($1 million limit), and excess liability coverage of $1 million. These requirements ensure that franchisees are adequately protected against various potential liabilities and risks associated with operating the business.
The insurance policies must name 1 800 Packouts (and its officers, directors, and employees) as additional insureds and include a waiver of subrogation rights against 1 800 Packouts. Additionally, 1 800 Packouts must receive 30 days' advance written notice of any material modification, cancellation, termination, or expiration of the policy. Franchisees must provide copies of insurance certificates within 30 days of signing the Franchise Agreement and annually thereafter.
1 800 Packouts retains the right to modify the required coverage amounts or types of insurance at any time to reflect changes in inflation, identified risks, laws, liability standards, or other relevant circumstances. This allows 1 800 Packouts to ensure that franchisees maintain adequate protection as business conditions evolve.