What is the minimum aggregate coverage amount required for Commercial General Liability, including Product Liability and Personal and Advertising Injury insurance that Aira Fitness franchisees must obtain?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
ements below.
| Type of Insurance | Minimum Amount |
|---|---|
| Commercial General Liability including Product | $1,000,000 per occurrence; |
| Liability and Personal and Advertising Injury | $2,000,000 in the aggregate |
| Fire Legal Liability: Damages to premises | $500,000 |
| Medical Expenses | $1,000 per accident |
| Professional liability including abuse and molestation (for owners and employees) | $1,000,000 per occurrence |
| Hired and Non-Owned Auto Liability | $1,000,000 per claim |
| Property – Special Form, including mechanical breakdown | $300,000 |
| Improvements and Betterments | Included |
| Business Income (12 months) | Actual loss sustained |
| Crime (employee dishonesty, theft and robbery) | $10,000 per occurrence |
| Cyber Liability (internet security and privacy insurance) | $25,000 per occurrence |
| Employment Practices Liability Insurance | $100,000 |
| Deductible | $1,000 |
| Defense Costs | In addition to policy limits |
| Commercial Umbrella Liability | $10,000,000 per occurrence and $10,000,000 in t |
Source: Item 8 — **RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 31–33)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, franchisees are required to maintain certain minimum insurance coverage amounts. Specifically, for Commercial General Liability, which includes Product Liability and Personal and Advertising Injury, Aira Fitness requires a minimum of $1,000,000 per occurrence and $2,000,000 in the aggregate. This insurance coverage must be secured from an approved supplier.
This requirement means that an Aira Fitness franchisee must have an insurance policy that covers up to $1,000,000 for any single incident and up to $2,000,000 total for all incidents within the policy period. This protects both the franchisee and Aira Fitness from potential financial losses due to lawsuits or claims related to accidents, injuries, or damages that may occur at the fitness center or result from the products or services offered.
In addition to Commercial General Liability, Aira Fitness mandates other insurance coverages, such as Fire Legal Liability, Medical Expenses, Professional Liability, Hired and Non-Owned Auto Liability, Property insurance, Business Income coverage, Crime insurance, Cyber Liability, and Employment Practices Liability Insurance. The franchisee is also responsible for a deductible of $1,000. Defense costs are in addition to the policy limits. Furthermore, Aira Fitness requires Commercial Umbrella Liability insurance with $10,000,000 per occurrence and $10,000,000 in the aggregate.
It is important for prospective Aira Fitness franchisees to factor in these insurance costs when evaluating the overall investment and operating expenses of the franchise. Franchisees must ensure they obtain the required insurance coverage from an approved supplier to comply with Aira Fitness's standards and protect their business from potential liabilities.