What is the minimum amount of business interruption insurance required for an Apricot Lane franchise?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
anual or otherwise. At a minimum, you must carry: (i) comprehensive general liability insurance, including broad form contractual liability, broad form property damage, personal injury, completed operations, products liability and fire damage coverage in the amount of $1,000,000, combined single limit per occurrence, $2,000,000 general aggregate, or any greater amount required by the lessor; (ii) automobile liability coverage of owned, non-owned and hired vehicles, with coverage in amounts not less than $1,000,000, combined single coverage; (iii) an "umbrella" policy providing excess coverage in amounts not less than $1,000,000 which must be in excess of general liability, auto and employers liability; (iv) worker's compensation insurance in amounts required by applicable law; (v) personal property insurance coverage in the amount of $75,000 or greater if you open with a higher inventory level; (vi) business interruption insurance in an amount which is the greater of the actual loss sustained or $50,000; (vii) stop gap coverage where applicable; (viii) stretch endorsements for crime, employee dishonesty and accounts receivable; and (ix) any other insurance required by State or locality in which the Franchised
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 17–20)
What This Means (2025 FDD)
According to Apricot Lane's 2025 Franchise Disclosure Document, franchisees must maintain business interruption insurance. The minimum coverage required is the greater of the actual loss sustained or $50,000. This insurance protects the franchisee from financial losses if the business is temporarily unable to operate due to unforeseen circumstances such as a fire, natural disaster, or other covered events.
In practical terms, this means an Apricot Lane franchisee needs to assess their potential losses from a business interruption and secure coverage that meets or exceeds that amount, with a floor of $50,000. The franchisee should carefully evaluate their operating expenses, potential lost revenue, and other financial obligations to determine the appropriate level of coverage.
It is important to note that Apricot Lane specifies that all insurance policies must be written by an insurance company licensed in the state where the franchise operates and have an "A" rating classification as indicated in Best's Key rating guide. Franchisees must ensure they meet this requirement when selecting their insurance provider. Additionally, Apricot Lane has designated InterWest Insurance Services as their preferred provider, and franchisees may be required to use them if they provide competitive prices.