What is the minimum coverage limit required 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 with a minimum coverage limit of $1,000,000 per claim in the aggregate. This insurance is intended to provide defense and coverage for claims brought by employees or other personnel alleging employment-related torts. The policy must also include third-party employment practices liability coverage.
In addition to the coverage limit, the policy can have a retention (deductible) no larger than $25,000. This means that the franchisee would be responsible for the first $25,000 of any claim, with the insurance covering the remainder up to the $1,000,000 limit.
It is important for prospective Bft franchisees to factor in the cost of this insurance, including the premium and potential retention, when evaluating the financial feasibility of the franchise. Franchisees should consult with qualified insurance professionals to obtain appropriate coverage that meets Bft's requirements and adequately protects their business from potential employment-related claims.