What is the minimum required Employer's Liability insurance coverage per accident for an Aplus franchise?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Coverage | Leased APLUS Store | Non-Leased APLUS Store |
|---|---|---|
| Workers’ Compensation | Statutory Limits | Statutory Limits |
| Employer’s Liability | $500,000 Per Accident | $500,000 Per Accident |
| $500,000 Disease – Policy Limit | $500,000 Disease – Policy Limit | |
| $500,000 Disease – Per | $500,000 Disease – Per | |
| Employee | Employee | |
| Commercial General Liability | $500,000 combined single | $500,000 combined single |
| limit per occurrence. | limit each occurrence. |
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS & SERVICES (FDD pages 33–37)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, franchisees are required to maintain Employer's Liability insurance coverage. The minimum coverage required is $500,000 per accident, regardless of whether the Aplus store is leased or non-leased. Additionally, the policy must cover $500,000 for disease, both as a policy limit and per employee.
This insurance protects Aplus franchisees from financial losses if an employee is injured or becomes ill due to work-related conditions. The coverage helps to pay for medical expenses, lost wages, and potential legal fees. Meeting these minimum insurance requirements is mandatory to remain in compliance with the Aplus Franchise Agreement.
It is important to note that Aplus also requires Workers’ Compensation insurance at statutory limits, as well as Commercial General Liability coverage of $500,000 combined single limit per occurrence. Franchisees should consult with an insurance professional to ensure they obtain adequate coverage to meet these requirements and protect their business from potential liabilities.