What is the minimum each occurrence limit for commercial umbrella coverage required for an Amorino franchise?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
least the types and minimum amounts of coverage specified below or as described within Amorino's written notice to you.
- (3) Such 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 property damage) and $4,000,000 general aggregate. Each year Amorino may unilaterally modify the insurance minimum coverage requirements which may i
Source: Item 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, franchisees must maintain commercial umbrella coverage with a minimum limit of $4,000,000 for each occurrence related to bodily injury and property damage. Additionally, the general aggregate must also be at least $4,000,000.
This insurance requirement protects both the franchisee and Amorino from significant financial losses resulting from major incidents at the franchised business. The "each occurrence" limit means that for every separate incident, up to $4,000,000 is available, while the "general aggregate" is the total amount the policy will pay out during its term.
Amorino retains the right to modify these insurance requirements, potentially increasing the minimum coverage to account for inflation or changing market conditions. Franchisees will receive written notice of any such changes. It is important to note that the franchisee's insurance obligations are not limited by any insurance Amorino may carry, and the franchisee remains liable under the indemnity provisions of the franchise agreement.
Prospective franchisees should factor these insurance costs into their overall investment and operating budget. They should also discuss these requirements with their insurance provider to ensure they can obtain the necessary coverage and understand the associated premiums.