What is the required Employer's Liability insurance coverage per accident for an Aplus franchise, whether it is a leased or non-leased store?
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. |
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, both leased and non-leased Aplus stores are required to maintain Employer's Liability insurance coverage of $500,000 per accident. Additionally, both types of stores must have $500,000 Disease - Policy Limit and $500,000 Disease - Per Employee.
Beyond the per-accident coverage, Aplus franchisees must also maintain other insurance coverages, including Workers’ Compensation at statutory limits and Commercial General Liability at $500,000 combined single limit per occurrence. Leased Aplus stores have an additional requirement for Special Form Property insurance to cover the replacement cost of Sunoco’s property. Both leased and non-leased stores must also carry Excess Liability coverage of $1,000,000 per occurrence in excess of other stated coverage, though this may be waived if the franchisee carries $1,500,000 General Liability coverage.
It is important to note that Aplus requires franchisees to secure insurance through a financially responsible carrier with a rating of "A-" or better by A.M. Best. Franchisees must include Sunoco Retail LLC Its Subsidiaries & Affiliates as an "Additional Insured" on all policies. Furthermore, franchisees must provide a certificate of insurance coverage to Sunoco before commencing operations and renewal certificates no later than seven days before each policy renewal date. The insurance policies must not be canceled or materially changed without prior written notice to Sunoco, and the required insurance coverage must be kept in full force and effect during the term of the franchise. Failure to maintain the required insurance coverage constitutes a material breach of the Aplus Franchise Agreement, potentially leading to the suspension of motor fuel deliveries to the Aplus store.