What is the minimum combined single limit required for the commercial general casualty and general liability insurance policy for an Anago subfranchisor?
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. The minimum combined single limit for this insurance is $1,000,000, along with an umbrella policy of $2,000,000, unless Anago agrees otherwise in writing.
In addition to the general liability coverage, Anago subfranchisors are also required to have an "Errors and Omissions" policy with $1,000,000 coverage. Furthermore, they must maintain workers' compensation insurance for accident or disease, with coverage of at least $500,000 per employee. These insurance policies must be obtained through the Anago National Insurance program.
Anago retains the right to modify the required coverage amounts or types of insurance at any time to reflect changes such as inflation, new risks, or changes in legal standards. If a subfranchisor fails to maintain the required insurance, Anago has the option to procure the insurance themselves and charge the subfranchisor for the premiums and expenses incurred. Subfranchisors must also ensure that their unit franchisees obtain the necessary insurance coverage to protect both the franchisor and subfranchisor from potential claims and damages.