What is the minimum combined single limit per occurrence required for commercial general liability insurance for an Aplus franchise?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
- (1) COMMERCIAL GENERAL LIABILITY INSURANCE against claims for damage to persons or property arising out of your operation of the Franchise at the Premises, including product liability, completed operations coverage and liquor liability (if applicable) with a minimum limit of at least $500,000 for bodily injury and property damage, combined single limit each occurrence. The coverage must include contractual liability covering the indemnification and hold harmless provisions of Section 2.16, subject to the Commercial General Liability Policy's standard terms and conditions.
- (5) If you conduct motor vehicle service or repairs at the Premises you shall have the following additional insurance coverages:
- (b) GARAGE LIABILITY INSURANCE coverage for bodily injury and property damage with minimum limits of at least $500,000 combined single limit per occurrence.
- (c) AUTOMOBILE LIABILITY INSURANCE coverage both bodily injury and property damage with minimum limits of at least $500,000 combined single limit per occurrence.
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, franchisees are required to maintain commercial general liability insurance with a minimum limit of $500,000 combined single limit for each occurrence. This insurance covers claims for bodily injury and property damage arising from the operation of the franchise. The coverage must include contractual liability, covering the indemnification and hold harmless provisions outlined in Section 2.16 of the franchise agreement, subject to the standard terms and conditions of the Commercial General Liability Policy.
If an Aplus franchisee conducts motor vehicle service or repairs at the premises, they must also carry garage liability insurance with minimum limits of at least $500,000 combined single limit per occurrence, as well as automobile liability insurance coverage with minimum limits of at least $500,000 combined single limit per occurrence for both bodily injury and property damage.
Sunoco must be included as an additional insured on all insurance policies. Aplus has the right to increase the minimum liability protection requirement annually to reflect inflation, changes in liability standards, future damage awards, or other relevant changes in circumstances. The insurance policies must be written by a company licensed in the state where the franchisee operates and have an "A-" Rating Classification or better, as indicated in A.M. Best's Key Rating Guide.