What is the minimum coverage limit and maximum retention for Employment Practices Liability insurance for a Bft franchise?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
ased or hired/rented vehicles are used in the operation of the franchise.
- (3) Workers Compensation insurance covering all of Franchisee's employees with statutory coverage and limits as required by state law. Such insurance shall include coverage for Employer's Liability with limits not less than $500,000 each accident, $500,000 disease – each employee, and $500,000 disease – po
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, franchisees must maintain Employment Practices Liability insurance. This insurance must have a minimum coverage limit of $1,000,000 per claim in the aggregate. The policy should provide defense and coverage for employment-related claims brought by employees or other personnel. Additionally, the policy must include third-party employment practices liability coverage.
The FDD also specifies that the Employment Practices Liability insurance policy can have a maximum retention of $25,000. Retention, in insurance terms, refers to the amount the franchisee must pay out-of-pocket before the insurance coverage kicks in.
It is important to note that Bft reserves the right to modify these insurance requirements in response to industry standards, market conditions, or landlord requirements. Franchisees are obligated to revise their coverage within 60 days of receiving notice from Bft about any changes to the insurance requirements.