What is the minimum single-limit coverage amount required for personal and bodily injury, death, and property damage under the comprehensive general liability insurance policy for a Benihana Restaurant?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
required by law or as we may designate. You must obtain and maintain through the term of the Franchise Agreement: (i) comprehensive general liability insurance (with products, completed operations, and contractual liability and independent contractors and escalators coverage) and comprehensive motor vehicle insurance (for owned and non-owned vehicles) against claims for bodily and personal injury, death, and property damage caused by or occurring in conjunction with the operation of the BENIHANA Restaurant (or otherwise in conjunction with your conduct of business under the Franchise Agreement) under one or more policies of insurance, each on an occurrence basis, with single-limit coverage for personal and bodily injury, death and property damage of at least $5,000,000 (or such other amount as we reasonably require); (ii) all-risk building and contents insurance including fire, flood and earthquake, vandalism, and theft insurance for the replacement value of the BENIHANA Restaurant and its contents; (iii) business interruption insurance for a period adequate to reestablish normal business operations; (iv) builders' risk insurance on a completed value non-reporting basis during the period of any remodeling of the BENIHANA Restaurant; and (v) workers' compensation insurance in such amount as may be required by applicable statute or rule. The aggregate annual premiums fo
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 21–28)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, franchisees must maintain comprehensive general liability insurance with single-limit coverage of at least $5,000,000 for personal and bodily injury, death, and property damage. This insurance must cover claims arising from the operation of the Benihana Restaurant or the franchisee's business conduct under the Franchise Agreement. The policy must be written on an occurrence basis. Benihana can reasonably require a higher coverage amount.
In addition to the comprehensive general liability insurance, Benihana franchisees are required to maintain other types of insurance, including comprehensive motor vehicle insurance, all-risk building and contents insurance, business interruption insurance, builders' risk insurance (during remodeling), and workers' compensation insurance. Benihana must be listed as an additional insured on all liability insurance policies.
The FDD estimates that the aggregate annual premiums for all required insurance policies will be $50,000. However, franchisees are responsible for negotiating payment terms directly with insurance carriers. This cost is an estimate and could vary based on factors such as location, coverage specifics, and the insurance provider selected.