What is the minimum amount of workers' compensation insurance coverage required for each employee of an Anago franchise, according to state law?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
, home address and telephone number within 10 days of the change. You release Us and Our officers, directors, stockholders, agents and legal successors and assigns from all causes of action, suits, debts, covenants, agreements, damages, judgments, claims and demands, in law or in equity, that You ever had, now have, or that You later may have from Our disclosure of Your name, home address and telephone number.
ARTICLE 9 - INSURANCE
SECTION 9.1 TYPES AND AMOUNTS OF COVERAGE.
You must obtain and maintain insurance, covering Your Anago Unit Franchise, at Your expense, as We require, in addition to all other insurance that may be required by applicable law, Your landlord, lender or otherwise. You are responsible for payment of all deductibles, should a claim arise. All policies must be written by an insurance company reasonably satisfactory to Us with a best rating of "A" or better, and must include at a minimum:
- (a) Commercial general liability insurance and completed operations coverage in the amount of $1,000,000 per person/per occurrence for bodily injury and property damage combined with a general aggregate of $2,000,000, and naming Us as an additional insured in each policy;
- (b) Workers' compensation insurance in accordance with state law covering bodily injury by accident or disease in an amount not less than $500,000 for each employee;
- (c) Automobile liability insurance.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, franchisees must secure workers' compensation insurance in accordance with state law. This insurance must cover bodily injury by accident or disease, with a minimum coverage of $500,000 for each employee.
This requirement ensures that Anago franchisees are protected from potential financial liabilities related to employee injuries or illnesses sustained during work. It also guarantees that employees have access to compensation for medical expenses and lost wages resulting from work-related incidents.
Furthermore, Anago mandates that no employee of a unit franchisee is allowed to enter a client's building unless they are covered by workers' compensation insurance. This strict enforcement underscores the importance of compliance with insurance requirements and the protection of both the franchisee and their employees. Anago also retains the right to adjust the required coverage amounts periodically to reflect changes in law, standards of liability, or other relevant circumstances.