What is the minimum coverage limit required for Bft's Employment Practices Liability insurance per claim in the aggregate?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
rage with limits not less than $10,000, and business interruption/extra expense coverage with limits not less than 12 months of rent.
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- Employment Practices Liability insurance with limits of not less than $1,000,000 per claim in the aggregate, with a retention not larger than $25,000, providing defense and coverage for claims brought by any of your employees or other personnel alleging various employment-related torts. Said policy shall also include Third Party Employment Practices Liability coverage.
Your policies must be written by an insurance company licensed in the state in which you operate the Studio, and the insurance company must have at least an "A" Rating Classification as indicated in A.M. Best's Key Rating Guid
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 32–36)
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 policy should also include Third Party Employment Practices Liability coverage. The policy's retention, or deductible, cannot exceed $25,000.
This type of insurance is designed to protect the franchisee from claims brought by employees or other personnel alleging employment-related torts, such as discrimination, wrongful termination, or harassment. The inclusion of Third Party Employment Practices Liability coverage suggests that the policy extends to claims made by individuals who are not directly employed by the franchisee but who may have a connection to the business, such as customers or vendors.
The insurance policy must be written by a licensed insurance company in the state where the Bft studio operates, and the insurance company must have an "A" Rating Classification or better, as indicated in A.M. Best's Key Rating Guide. Additionally, Bft, Assetco, and their subsidiaries/affiliates must be included as Additional Insureds on the studio's Commercial General Liability policy.
Meeting these insurance requirements is a condition of operating a Bft franchise, and failure to maintain the required coverage could result in a breach of the franchise agreement. Prospective franchisees should factor the cost of these insurance policies into their overall investment and operating expenses.