What is the combined single limit for the commercial general casualty and general liability insurance policy that an Anago subfranchisor must obtain?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
de less coverage. The insurance afforded by any liability policy will not be limited in any way by reason of any insurance maintained by Franchisor. Subfranchisor is responsible for payment of all deductibles, should a claim arise.
- (b) The policy or policies will be written by a licensed insurance company and will include, at a minimum, commercial general casualty insurance and general liability insurance, including products liability, property damage, owned and non-owned motor vehicle coverage, and personal injury coverage with a combined single limit of $1,000,000, with an umbrella policy of $2,0
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, subfranchisors must maintain specific insurance coverage during the term of their agreement. This includes commercial general casualty and general liability insurance, encompassing products liability, property damage, owned and non-owned motor vehicle coverage, and personal injury coverage. The minimum requirement for this combined single limit is $1,000,000. Additionally, subfranchisors are required to have an umbrella policy of $2,000,000, unless Anago agrees otherwise in writing.
Furthermore, Anago mandates that subfranchisors secure an "Errors and Omissions" policy with $1,000,000 coverage, along with workers' compensation insurance amounting to at least $500,000 per employee for accident or disease. Subfranchisors are obligated to obtain insurance coverage through the Anago National Insurance program for the entire term of the agreement.
It is important to note that Anago retains the right to periodically adjust the required coverage amounts and may also mandate different or additional types of insurance. These adjustments could be due to factors such as inflation, identification of new risks, changes in laws or liability standards, or higher damage awards. All liability policies must name Anago as an additional insured and provide Anago with notice of any premium payment default or policy changes. The subfranchisor is responsible for covering all deductibles in the event of a claim.