What is the minimum per occurrence amount for event insurance that a Belocal franchisee must carry?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
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Insurance: You must obtain and maintain in full force and effect the levels of insurance specified in the Franchise Agreement and the Franchise Brand Standards Manual or applicable law. At a minimum, you must carry (i) Comprehensive General Liability Insurance, including broad-form contractual liability, broad-form property damage, personal injury, advertising injury, completed operations, products liability, and fire damage coverage, in the amount of $2,000,000 combined single limit per occurrence and $4,000,000 general aggregate; (ii) automobile liability coverage, including coverage of owned, non-owned, and hired vehicles, with coverage in amounts not less than $300,000 combined single limit; (iii) event insurance for each event you host or sponsor in connection with the Publication in the amount of $1,000,000 per occurrence, $2,000,000 in the aggregate, regardless of where the event is located; and (iv) such other insurance as may be required by the state or locality in which you operate the Franchised Business. All policies must be acceptable to us. From time to time in our sole discretion, we may increase or modify such limits of liability or require additional types of coverage. In each of these policies, except for workers' compensation (if applicable), you agree to name us and our affiliates, and the officers, directors, shareholders, partners, agents, representatives, independent contractors, servants, and employees of each of them, as additional insureds (each, an "Additional Named Insured"), which will expressly protect both you and each Additional Named Insured and will require the insurer to defend both you and each Additional Named Insured in any action while reserving the right of each Additional Named Insured to involve counsel of their own choosing in protection of their own and system-wide interests. Additionally, your insurance policy must waive on behalf of the insurer any right of subrogation by the insurance company against us, the Additional Named Insureds, our officers, shareholders, and employees. Your insurance must apply as primary and non-contributor
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 33–35)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, franchisees are required to maintain certain insurance coverage levels. Specifically, Belocal franchisees must secure event insurance for each event they host or sponsor related to their publication. The minimum coverage required is $1,000,000 per occurrence and $2,000,000 in the aggregate, regardless of the event's location.
This insurance requirement ensures that Belocal franchisees are financially protected against potential liabilities arising from events they organize. The coverage helps to mitigate risks associated with accidents, injuries, or property damage that could occur during these events. The franchisor, Belocal, also benefits from this insurance coverage, as they are named as an additional insured on the policy. This protects Belocal from potential liabilities related to franchisee-sponsored events.
In addition to event insurance, Belocal franchisees must also maintain other types of insurance, including comprehensive general liability insurance and automobile liability coverage. The franchisor retains the right to increase or modify these insurance requirements at their discretion. It is important for prospective franchisees to factor in the cost of these insurance policies when evaluating the overall investment required to start and operate a Belocal franchise.