What are the minimum coverage amounts required for employer's liability insurance for an Amorino franchise?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
is located and with a rating of "A" or better.
Such insurance policies shall include, at the minimum, the following policies: (a) "all risk" or "special" property insurance covering all real and personal property and equipment on a replacement costs basis, including business interruption and extra expense insurance; (b) comprehensive commercial general liability insurance in an amount of not less than the following combined single limits: $2,000,000 general aggregate, $2,000,000 products/completed operations aggregate, $1,000,000 each occurrence, $1,000,000 personal and advertising injury, $50,000 fire damage legal liability, and $5,000 medical expense limit (any one person); (c) employers liability coverage in an amount not less than $500,000 per accident for bodily injury by accident, $500,000 policy limit for bodily injury by disease, and $500,000 per employee for bodily injury by disease; (d) business automobile liability coverage, including coverage of owned, non-owned, rented or hired vehicles with coverage in amounts not less than $1,000,000 combined single limit; (e) workers' compensation insurance for statutory limits, and (f) commercial umbrella coverage in an amount of not less than $4,000,000 each occurrence (bodily injury and pr
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 32–36)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, franchisees must maintain employer's liability coverage with specific minimum amounts. The required coverage includes $500,000 per accident for bodily injury, a $500,000 policy limit for bodily injury by disease, and $500,000 per employee for bodily injury by disease. This insurance protects the franchisee against potential liabilities arising from employee injuries or illnesses sustained during their employment.
These minimum coverage amounts are set to ensure that Amorino franchisees have adequate financial protection in the event of workplace accidents or illnesses. It is important for prospective franchisees to understand these requirements and factor the cost of insurance into their overall business plan. Failing to maintain the required insurance coverage could result in Amorino obtaining the insurance on the franchisee's behalf and charging them for the premium costs.
Amorino also retains the right to modify these minimum coverage requirements, potentially increasing them to reflect changes in inflation or market conditions. This means that franchisees need to be prepared for possible increases in their insurance expenses over time. It is a common practice in franchising for franchisors to mandate specific insurance coverage levels to protect the brand and the entire franchise system from potential liabilities.
Prospective franchisees should consult with insurance professionals to obtain quotes and ensure they can meet Amorino's insurance requirements. Understanding the details of the required insurance policies is a crucial part of assessing the financial viability of an Amorino franchise.