What was the per occurrence and aggregate coverage amount of Aplus's private insurance policy during 2023 for third-party liability claims?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
agencies. In particular, at the federal level, the Resource Conservation and Recovery Act of 1976, as amended, requires the EPA to establish a comprehensive regulatory program for the detection, prevention and cleanup of leaking underground storage tanks (e.g. overfills, spills and underground storage tank releases).
Federal and state regulations require us to provide and maintain evidence that we are taking financial responsibility for corrective action and compensating third parties in the event of a release from our underground storage tank systems and terminals. In ord
Source: Item 22 — CONTRACTS (FDD page 68)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, the company maintained private insurance policies to protect against third-party liability claims related to releases from underground storage tanks. In 2023, Aplus's insurance coverage was $10 million per occurrence and $10 million in the aggregate. The FDD states that Aplus's sites continue to be covered by these policies.
This insurance coverage is crucial for Aplus, given the environmental regulations and potential liabilities associated with underground storage tanks. Federal and state regulations mandate that Aplus demonstrates financial responsibility for corrective actions and compensating third parties in the event of a release from these tanks.
For a prospective Aplus franchisee, this information indicates that the company has taken steps to mitigate potential financial risks associated with environmental liabilities. However, it is important to note that the levels of insurance protection may change in the future, and there is no guarantee that such levels will remain adequate to protect Aplus from material expenses related to personal injury or property damage. Franchisees should inquire about the specifics of the current insurance policies and any potential changes in coverage or costs.