What minimum amount of employer's liability insurance is required for Baya Bar franchisee's employees?
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, franchisees are required to maintain employer's liability insurance for their employees. The minimum coverage amount must be One Hundred Thousand Dollars ($100,000) per accident. This insurance is in addition to worker's compensation coverage, which must be in the limits required by state law. Franchisees must also carry any other insurance required by statute or rule of the state in which the Franchised Business is located and operated.
This requirement ensures that Baya Bar franchisees have adequate financial protection in the event of employee accidents or injuries. The franchisee is responsible for covering these insurance costs. Maintaining the required insurance coverage is a condition of the franchise agreement, and failure to do so could result in the franchisor procuring the insurance and charging the franchisee for the cost, along with associated fees.
In addition to employer's liability insurance, Baya Bar franchisees must also obtain and maintain other insurance policies, including commercial general liability insurance, property insurance, and business interruption insurance. The specific minimum limits and coverage details for these policies are outlined in the FDD. Franchisees should carefully review the insurance requirements to ensure they have adequate coverage to protect their business and meet the franchisor's requirements.