What is the per occurrence coverage amount for Excess Liability insurance required 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. | ||
| Special Form Property | Replacement cost of the value of Sunoco’s property. (Replacement value amount to be provided by Sunoco) | N/A | |
| Excess Liability** | $1,000,000 per occurrence in | $1,000,000 per occurrence in | |
| excess of other stated coverage. | excess of other stated coverage. | ** Excess Liability coverage may be waived if you carry $1,500,000 General Liability coverage. |
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, franchisees are generally required to maintain Excess Liability insurance coverage with a minimum limit of $1,000,000 per occurrence in excess of other stated coverages. This insurance is in addition to other required coverages, such as Commercial General Liability Insurance. However, Aplus franchisees have the option to waive the Excess Liability coverage if they carry $1,500,000 in General Liability coverage.
This requirement ensures that Aplus franchisees have sufficient financial protection against large claims or lawsuits that could arise from their business operations. The excess liability coverage acts as an additional layer of protection beyond the limits of the Commercial General Liability, Workers' Compensation, and Automobile Liability insurance policies. This coverage helps protect the franchisee's assets in the event of a catastrophic event.
The franchisor, Sunoco, must be included as an additional insured and loss payee on all insurance policies. Franchisees must provide proof of insurance coverage to Aplus, including certificates of insurance, within fifteen days of receiving them, and these certificates must indicate that the policies will not be canceled or altered without at least thirty days' prior written notice to Aplus.
It is important for prospective Aplus franchisees to understand these insurance requirements and factor the costs of obtaining and maintaining the necessary coverage into their business plan. Failure to maintain the required insurance coverage could result in Aplus procuring the insurance on the franchisee's behalf and charging the franchisee for the premiums, along with a fee not exceeding $1,000.