What is the minimum limit per occurrence 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 is one component of a broader insurance requirement that Aira Fitness imposes on its franchisees.
Maintaining adequate professional liability insurance is crucial for any fitness business. It protects the franchisee from potential financial losses due to claims of negligence, malpractice, or harm to clients. The inclusion of abuse and molestation coverage highlights the importance of protecting clients and addressing potential risks in the fitness environment.
It is important to note that Aira Fitness can modify the required minimum insurance limits as conditions require, reflecting changes in 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 ensure they maintain adequate coverage and comply with the franchise agreement.