What is the minimum coverage for worker's compensation insurance required for Baya Bar franchisees?
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 must secure worker's compensation coverage that meets the minimum limits mandated by the state where the franchise operates. Additionally, franchisees are required to maintain employer's liability insurance with a minimum coverage of $100,000 per accident. This coverage must be in place for all of the franchisee's employees.
This requirement ensures that Baya Bar franchisees are protected against potential liabilities arising from workplace injuries. It also guarantees that employees have access to compensation for medical expenses and lost wages in the event of an accident. The franchisee is responsible for covering the costs associated with these insurance policies.
It's important to note that Baya Bar retains the right to increase the minimum insurance requirements or introduce new types of insurance coverage as deemed necessary. Franchisees are obligated to provide proof of coverage that meets these updated requirements within 30 days of notification. This ensures that all Baya Bar locations maintain adequate insurance protection, aligning with the brand's risk management strategy.