What is the minimum amount of the Umbrella Policy required for a Big Apple Bagels franchise?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
e, muffins, sandwiches, and/or coffee, as well as any other items or products that Franchisee is authorized to sell subsequent to the date of this Agreement, to the public through retail or wholesale channels of distribution.
g. Insurance.
- i. During the term of the Franchise, Franchisee shall maintain in force, under policies of insurance issued by carriers duly admitted in the Store's state, with an A.M. Best rating not less than A-, and acceptable to Franchisor, comprehensive general liability and property damage insurance against claims for bodily and personal injury, death and property damage caused by or occurring in conjunction with the operation of the BAGELS Store, or otherwise in conjunction with the conduct of business by Franchisee pursuant to the Franchise Agreement, under one or more policies of insurance containing coverage for: Workers Compensation including Employers Liability in the limit of no less than $500,000; Comprehensive General Liability of no less than $1,000,000 per occurrence with a General Aggregate of no less than $2,000,000.00; Products Liability of $2,000,000; Employment Practices Liability of no less than $500,000, Cyber Liability of no less than $1,000,000; Property Insurance in the amount of the replacement cost for stock, inventory, equ
Source: Item 22 — CONTRACTS (FDD pages 86–87)
What This Means (2025 FDD)
According to Big Apple Bagels' 2025 Franchise Disclosure Document, franchisees are required to maintain an Umbrella Policy with a minimum coverage of $1,000,000. This policy is part of the comprehensive insurance coverage that franchisees must secure during the term of their franchise agreement.
In addition to the Umbrella Policy, Big Apple Bagels franchisees must also maintain other insurance policies, including Workers Compensation, Comprehensive General Liability, Products Liability, Employment Practices Liability, Cyber Liability, Property Insurance, and Business Interruption coverage. The specific amounts and types of coverage may be periodically increased by Big Apple Bagels to reflect inflation, new risks, changes in law, or higher damage awards.
It is important to note that the cost of insurance can vary based on the types and limits of coverage purchased, as well as other factors affecting risk exposure. Furthermore, if a franchisee operates a BAGELS Satellite Store, the insurance requirements may be higher than those for a BAGELS Production Store due to increased vehicle use. Franchisees should consult with insurance professionals to ensure they obtain adequate coverage to meet Big Apple Bagels' requirements and protect their business.