What is the minimum required amount for each occurrence under the comprehensive commercial general 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 comprehensive commercial general liability insurance with specific minimum coverage limits. The insurance policy must include $2,000,000 for the general aggregate, $2,000,000 for products/completed operations aggregate, $1,000,000 for each occurrence, $1,000,000 for personal and advertising injury, $50,000 for fire damage legal liability, and a $5,000 medical expense limit for any one person.
In practical terms, this means that if an incident occurs at the Amorino store that leads to a liability claim, the 'each occurrence' limit of $1,000,000 is the maximum amount the insurance company will pay for a single incident. The other limits, such as the general aggregate and products/completed operations aggregate, define the maximum the insurer will pay over the policy period for all claims of those types.
Amorino also requires franchisees to maintain other insurance policies, including property insurance, employer's liability coverage, business automobile liability coverage, workers' compensation insurance, and commercial umbrella coverage. The franchisor may also modify the insurance minimum coverage requirements each year, which may include increases to reflect changes in inflation or as market conditions warrant. It is important to note that failure to maintain the required insurance could result in Amorino obtaining insurance on the franchisee's behalf and charging the franchisee for the premium costs.