What is the recommended policy limit for Employment Practices insurance for a Benjamin Franklin Plumbing franchise?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type | Minimum Coverage |
|---|---|
| Comprehensive General Liability | $1 million per incident / $2 million aggregate |
| Automobile Liability for owned, | $1 million combined single limit per state for |
| leased, hired and non-owned | Medical/Personal Injury Protection and $1 million |
| vehicles | Uninsured/Underinsured Motorist |
| Employer Liability | $1 million per incident $1 million per employee $1 million policy limit |
| Workers Compensation | As required by law in your area. If your state does not have specific requirements, then: $1,000,000 per employee $1,000,000 per accident $1,000,000 policy limit |
| RECOMMENDED BUT NOT CURRENTLY REQUIRED INSURANCE COVERAGE | |
| Type | Minimum Coverage |
| Commercial Umbrella Policy | $1 million excess over all underlying liability coverages per occurrence and $1 million in the aggregate |
| Business Interruption | 12 months loss of income, including coverage for our Royalty Fees with no co-insurance clause |
| Employment Practice |
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 37–43)
What This Means (2025 FDD)
According to the 2025 Benjamin Franklin Plumbing Franchise Disclosure Document, while not currently required, the recommended policy limit for Employment Practices insurance is $25,000. This insurance coverage is designed to protect the franchisee from claims related to employment practices, such as wrongful termination, discrimination, or harassment.
Although this coverage is recommended, Benjamin Franklin Plumbing franchisees should consider the potential risks associated with employment-related claims and evaluate whether a higher policy limit is appropriate for their specific circumstances. Factors to consider may include the number of employees, the location of the business, and the legal landscape in their area.
Franchisees should also be aware that Benjamin Franklin Plumbing can increase the coverage requirements or require different or additional kinds of insurance as they deem necessary. It is important for prospective franchisees to discuss insurance requirements and recommendations with the franchisor and an insurance professional to ensure they have adequate coverage.