What is the minimum coverage amount required for professional liability insurance, including abuse and molestation, for an Aira Fitness franchise?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
e event you default in making any such payment, we are authorized, but not required, to pay the same on your behalf and you agree promptly to reimburse us on demand for any such payment.
- B. Insurance. You must maintain in full force and effect throughout the term of this Agreement that insurance which you determine is necessary or appropriate for liabilities caused by or occurring in connection with the development or operation of the Aira Fitness Business. Such insurance must include, at a minimum: (i) special/causes of loss coverage forms, including mechanical/equipment breakdown (previously called "All Risk coverage") on the Aira Fitness Business and all fixtures, equipment and other property used in the operation of the Aira Fitness Business, for full replacement value of the equipment and improvements; (ii) business interruption insurance covering a minimum 12 months loss of income, written on an actual loss sustained basis, including coverage for our monthly fees with us named as a loss payee with respect to those fees; (iii) comprehensive general liability insurance with minimum limits of at least $1,000,000 per occurrence and $2,000,000 aggregate (including product liability and personal and advertising injury) and "Per Location" aggregate limits when multiple Aira Fitness Business locations are insured under one comprehensive general liability policy; (iv) automobile liability insurance, including owned, hired and non-owned vehicle coverage with a minimum combined single limit of at least $1,000,000 per claim; (v) workers' compensation and employer's liability i
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, franchisees must maintain professional liability insurance, including coverage for abuse and molestation. The minimum limit required is $1,000,000 per occurrence.
This insurance requirement is designed to protect both the franchisee and Aira Fitness from potential liabilities arising from professional services provided at the fitness center. The inclusion of abuse and molestation coverage highlights the importance of safeguarding members and staff. Franchisees need to ensure their insurance policies specifically include this coverage and meet the minimum limit to comply with Aira Fitness's requirements.
It is important to note that Aira Fitness may modify the required minimum insurance limits from time to time to reflect changes in relevant circumstances, industry standards, experiences within the Aira Fitness system, standards of liability, and higher damage awards. Franchisees should stay informed of any changes to these requirements to maintain compliance and adequate protection.
While Aira Fitness sets minimum insurance requirements, franchisees are not restricted from acquiring and maintaining insurance with higher policy limits or lower deductibles than required. Franchisees should assess their individual risk exposure and consider whether additional coverage is necessary to adequately protect their business.