What rating must the insurance providers have to underwrite coverage for an Amorino store?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
our current design standards.
Insurance
You must obtain and maintain insurance policies protecting you, and us and such additional
Amorino Unit Franchise Disclosure Document –April 24, 2025 Page 33 of 80
insureds as we may require from time to time, on a primary non-contributory basis. The insurance must be underwritten by insurers licensed and admitted to write coverage in the state in which the Store 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, insurance providers must have a rating of "A" or better to underwrite coverage for an Amorino store. The insurance policies must protect the franchisee, Amorino, and any additional insured parties that Amorino may require. These policies must be on a primary non-contributory basis and underwritten by insurers licensed and admitted to write coverage in the state where the store is located.
Amorino mandates several specific insurance policies, including 'all risk' or 'special' property insurance, comprehensive commercial general liability insurance with limits such as $2,000,000 general aggregate and $1,000,000 each occurrence, employers liability coverage with limits of $500,000 per accident, business automobile liability coverage of $1,000,000 combined single limit, workers' compensation insurance for statutory limits, and commercial umbrella coverage of $4,000,000 each occurrence and general aggregate.
Prospective franchisees should note that maintaining adequate insurance coverage is a strict requirement. Failure to do so could result in Amorino obtaining insurance on the franchisee's behalf and charging the franchisee for the premium costs. Additionally, Amorino may unilaterally modify the minimum coverage requirements each year, potentially increasing the financial burden on the franchisee to maintain compliance. This ensures that both the franchisee and Amorino are protected against potential liabilities and losses.