What is the minimum aggregate limit required for the comprehensive general liability insurance for a Beard Papas franchise?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
e Franchised Business' property value;
- b) Comprehensive general liability insurance, written on an occurrence basis, extended to include contractual liability, products and completed operations, and personal and advertising injury, with a combined bodily injury and property damage limit of at least $1,000,000 per occurrence and $2,000,000 in the aggregate. There may be no products liability or completed operations exclusion. There may be no "injury to subcontractor employee," or its equivalent, exclusion. The commercial general liability policy must provide coverage to you for the hold harmless and indemnity clauses
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 26–29)
What This Means (2025 FDD)
According to Beard Papas's 2025 Franchise Disclosure Document, franchisees must maintain comprehensive general liability insurance with specific coverage limits. The insurance policy must be written on an occurrence basis and extended to include contractual liability, products and completed operations, and personal and advertising injury.
The minimum combined bodily injury and property damage limit must be at least $1,000,000 per occurrence and $2,000,000 in the aggregate. The policy cannot have any products liability or completed operations exclusions, nor can it exclude "injury to subcontractor employee" or its equivalent.
Furthermore, the commercial general liability policy must provide coverage to Beard Papas for the hold harmless and indemnity clauses contained in the Franchise Agreement. This ensures that Beard Papas is protected from liabilities arising from the franchisee's operations. Franchisees should consult with their insurance carrier to determine if higher coverage limits are necessary based on their specific circumstances and potential exposures.