What is the minimum required coverage limit per occurrence for Aplus excess liability insurance?

According to Aplus's 2024 Franchise Disclosure Document, franchisees must maintain excess liability insurance coverage with minimum limits of at least $500,000 per occurrence, in excess of other specified coverages. However, Aplus also states that franchisees may be required to carry $1,000,000 per occurrence in excess of other stated coverage.

For Aplus franchisees, this means securing an excess liability insurance policy that provides a minimum of $500,000 coverage for each incident, on top of the other required insurance policies. This coverage protects the franchisee from significant financial losses resulting from large claims or lawsuits.

However, the FDD also states that this excess liability coverage may be waived if the franchisee carries $1,500,000 in general liability coverage. This provides an alternative for franchisees who prefer to have higher general liability coverage instead of the excess liability insurance.

Aplus also retains the right to increase the minimum liability protection requirements annually to reflect inflation, changes in liability standards, future damage awards, or other relevant changes in circumstances. It is important for prospective franchisees to factor in potential future increases in insurance costs when evaluating the financial feasibility of the franchise.