What are the insurance coverage requirements for a Best In Class Education Center franchisee?
Best_In_Class_Education_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
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Insurance Policies
You must obtain the insurance coverage we require (whether in the Franchise Agreement or in the Manual) from licensed insurance carriers rated A or better by AM Best, including the following:
| Policy Type | Minimum Coverage | |
|---|---|---|
| "All risk" Property Insurance | Replacement Value | |
| Comprehensive General Liability Insurance | $1,000,000 per occurrence and $2,000,000 in the aggregate | |
| Sexual Assault and Molestation Insurance | $100,000 per occurrence and $300,000 in the aggregate | |
| Business Interruption Insurance | At least 6 months | |
| Worker's Comp & Employer Liability Insurance | As required by law | |
| Landlord-Required Insurance | As required by lease |
The required coverage and policies are subject to change. Each policy must be endorsed to: (a) name us and our owners, officers and directors as additional insureds; (b) waive all subrogation rights against us; and (c) provide us with 10 days' prior written notice of the termination, e
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 19–22)
What This Means (2025 FDD)
According to Best In Class Education Center's 2025 Franchise Disclosure Document, franchisees are required to obtain specific insurance coverage from licensed insurance carriers with an AM Best rating of A or better. These insurance policies must include Best In Class Education Center and its owners, officers, and directors as additional insureds, waive all subrogation rights against them, and provide them with 10 days' prior written notice of any termination, expiration, cancellation, or modification of the policy. The required coverage and policies are subject to change.
The specific types of insurance and their minimum coverage amounts are detailed in the FDD. Franchisees must maintain "All risk" Property Insurance at replacement value, Comprehensive General Liability Insurance with $1,000,000 per occurrence and $2,000,000 in the aggregate, Sexual Assault and Molestation Insurance with $100,000 per occurrence and $300,000 in the aggregate, and Business Interruption Insurance for at least 6 months. Additionally, franchisees must carry Worker's Comp & Employer Liability Insurance as required by law and Landlord-Required Insurance as mandated by their lease agreement.
Prospective franchisees should carefully review these insurance requirements with a qualified insurance broker to understand the costs and coverage necessary to operate a Best In Class Education Center franchise. Failing to maintain adequate insurance coverage could result in a breach of the franchise agreement and potential liability for any losses or damages incurred.