What are the minimum Employer's Liability limits required for Workers Compensation insurance for a Bft franchise?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
loyee Benefits Liability (aggregate): $2,000,000 Medical Expense (any one person): $5,000
Sexual Abuse and Molestation: Included (not excluded)
Such insurance shall include coverage for contractual liability (for liability assumed under an "insured contract"), products-completed operations, personal and advertising inj
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, franchisees are required to maintain Workers Compensation insurance that includes specific Employer's Liability limits. This insurance must cover all of the franchisee's employees and comply with the statutory coverage and limits mandated by state law.
The Employer's Liability coverage must have minimum limits of $500,000 for each accident, $500,000 for disease per employee, and $500,000 for disease in the aggregate policy limit. This ensures that Bft franchisees have adequate financial protection in the event of employee work-related injuries or illnesses.
It is important to note that all insurance policies must be written by an insurance company licensed in the state where the Bft studio operates and must have at least an "A" Rating Classification as indicated in A.M. Best's Key Rating Guide. Franchisees must provide certificates of coverage to Bft at least annually, and failure to maintain the required insurance coverage can be grounds for immediate termination of the Franchise Agreement.