Is sexual misconduct liability insurance required for Best Brains franchisees and their employees?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
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Insurance.
You must purchase insurance in the types and amounts of coverage that we specify and we reserve the right to specify designated broker(s) or insurance carrier(s). At present, we require franchisees to purchase the following minimum insurance requirements:
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- Commercial general liability insurance policy, including products liability, combined single limit for bodily injury and property damage liability in the minimum amount of $1,000,000 per occurrence and $2,000,000 aggregate.
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- Workers' compensation insurance as required by local law.
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- Best Brains, Inc. must be listed as an additional insured and provide for written communication at least 30 days in advance of a cancellation of the policy.
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- It is recommended but not required that franchisees a
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 19–21)
What This Means (2025 FDD)
According to Best Brains's 2025 Franchise Disclosure Document, sexual misconduct liability insurance is not a mandatory requirement for franchisees and their employees. While Best Brains specifies minimum insurance requirements, including commercial general liability insurance and worker's compensation insurance, it only recommends, but does not require, that franchisees acquire sexual misconduct liability insurance for themselves and their employees.
Best Brains franchisees must secure commercial general liability insurance with a minimum of $1,000,000 per occurrence and $2,000,000 aggregate. They also need to obtain worker's compensation insurance as mandated by local law. Additionally, Best Brains, Inc. must be listed as an additional insured on the commercial general liability policy, with a provision for written communication at least 30 days before any policy cancellation.
While not mandatory, prospective Best Brains franchisees should carefully consider the recommendation to acquire sexual misconduct liability insurance. This type of insurance can provide financial protection against potential claims, which could be beneficial in the long run, especially when employing staff. Franchisees should evaluate their risk tolerance and consult with an insurance professional to determine the appropriate level of coverage for their specific circumstances.