What are the minimum limits for Employer's Liability Insurance that a Beehive Homes franchisee must maintain?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
ON
- 10.1. Insurance. Franchisee shall acquire and maintain, at his own expense at all times during the entire Term of this Agreement, (a) Worker's Compensation insurance prescribed by law in the state in which the Home is located and Employer's Liability Insurance with $100,000/$500,000/$100,000 minimum limits; (b) Commercial General Liability/Professional Liability insurance in a form approved by Franchisor with a limit of $1,000,000 per occurrence/$2,000,000 aggregate, including a Sexual Abuse & Molestation rider with a limit of at least $1,000,000; and (c) property damage insurance covering the Home and its contents
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, franchisees are required to maintain Employer's Liability Insurance with specific minimum limits. This insurance coverage is essential to protect the franchisee from potential liabilities related to employee injuries or illnesses that occur during the course of their employment at the Beehive Homes location.
The minimum limits for Employer's Liability Insurance are $100,000 per accident, $500,000 per disease (policy limit), and $100,000 per disease (each employee). These limits define the extent to which the insurance policy will cover costs associated with employer liability claims. It is important for prospective franchisees to understand these requirements and ensure they obtain adequate coverage to meet these minimums.
In addition to Employer's Liability Insurance, Beehive Homes also requires franchisees to maintain Worker's Compensation insurance as prescribed by law in the state where the Home is located, Commercial General Liability/Professional Liability insurance with specified limits, and property damage insurance. Franchisees must also name Beehive Homes as an additional insured on all policies and provide copies to the franchisor. Failing to maintain the required insurance coverage could result in a breach of the franchise agreement and potential legal and financial repercussions for the franchisee.