What determines the required limits for worker's compensation coverage for a Baya Bar franchise?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
personal injury, advertising injury, and products liability coverage in the amount of at least One Million Dollars ($1,000,000) per occurrence and
Two Million ($2,000,000) aggregate;
- 15.1.2 Employment. Worker's compensation coverage in the limits required by state law and employer's liability insurance in the amount of One Hundred Thousand Dollars ($1
Source: Item 22 — CONTRACTS (FDD page 56)
What This Means (2024 FDD)
According to Baya Bar's 2024 Franchise Disclosure Document, the limits for worker's compensation coverage are determined by state law. Franchisees must carry worker's compensation coverage in the limits required by the state in which their Baya Bar franchise is located and operated. Additionally, franchisees must maintain employer's liability insurance in the amount of $100,000 per accident for all employees.
Beyond the state-mandated limits for worker's compensation, Baya Bar also requires franchisees to maintain other insurance coverage. This includes commercial general liability insurance, property insurance, business interruption insurance, and automobile insurance if a vehicle is operated for the business. The franchisor, Baya Bar, its officers, directors, partners, owners, employees, and affiliates must be named as additional insureds on these policies.
Baya Bar retains the right to increase the minimum insurance requirements or add additional types of insurance coverage as deemed reasonably prudent. Franchisees are required to provide proof of coverage to Baya Bar within 30 days of any changes to the required limits or types of coverage. Failure to maintain the required insurance allows Baya Bar to procure insurance on behalf of the franchisee, charging the franchisee for the cost plus a reasonable fee.