What is the minimum coverage required for Employer's Liability Insurance for a Baymont Inn Suites franchise?
Baymont_Inn_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
erage that may be available to an additional insured.
Specific coverages include Commercial General Liability Insurance with minimum coverage of $1,000,000 combined single limit per occurrence covering premises, products, independent contractors, bodily injury, personal injury, contractual and advertising liability, property damage, and insured contract liability; Liquor Liability with minimum coverage of $1,000,000 per occurrence as well as inclusion in excess liability coverage if beer, liquor, or alcoholic beverages are sold or served on site, including but not limited to, by restaurants or lounges, minibars, or vending machines; Comprehensive Automobile Liability Insurance with minimum coverage of $1,000,000 combined single limit per occurrence on all vehicles; Worker's Compensation in compliance with state laws; Employers Liability Insurance with minimum coverage of $100,000; Business Interruption (Loss of Earnings) Insurance with a minimum of $100,000 of coverage, actual loss or twelve (12) months sustained; and Umbrella/Excess Liability Insurance at least as broad as the required underlying coverage, with minimum limits of liability of $3,000,000 per occurrence. In addition, each Franchisee with an on-site restaurant, including but not limited to an owned or leased lounge or recreational facility space, must require that the operator satisfy the minimum insurance requirements listed in the System Standards Manual.
The failure to carry insurance coverage meeting the requirements described in the System Standards is a material default under the Franchise Agreement and may be grounds for termination of the Franchise Agreement. In addition, should you for any reason fail to procure or maintain the insurance required, we have the right and authority (without, however, any obligation) to immediately procure such insurance and to charge the cost thereof to you, which charge, together with a reasonable fee for our expenses in so a
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 53–56)
What This Means (2025 FDD)
According to Baymont Inn Suites's 2025 Franchise Disclosure Document, franchisees are required to maintain Employer's Liability Insurance with a minimum coverage of $100,000. This insurance protects the franchisee against potential liabilities arising from employee injuries or illnesses sustained during their employment.
The FDD specifies that failure to maintain the required insurance coverage constitutes a material default under the Franchise Agreement, potentially leading to termination of the agreement. Furthermore, Baymont Inn Suites retains the right, but not the obligation, to procure the necessary insurance on behalf of the franchisee if they fail to do so, with the franchisee bearing the cost, along with a reasonable fee for expenses incurred by Baymont Inn Suites.
In addition to Employer's Liability Insurance, Baymont Inn Suites requires franchisees to carry other specific insurance coverages, including Commercial General Liability Insurance, Liquor Liability, Comprehensive Automobile Liability Insurance, Worker's Compensation, Business Interruption Insurance, and Umbrella/Excess Liability Insurance. These requirements ensure that all Baymont Inn Suites hotels maintain adequate protection against various risks and liabilities, safeguarding both the franchisee's and the franchisor's interests.