What is the minimum required Employment Practices Liability coverage 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 must maintain Employment Practices Liability coverage of no less than $500,000 during the term of the franchise agreement. This insurance coverage is intended to protect against claims related to employment practices, such as discrimination, wrongful termination, or harassment.
In addition to Employment Practices Liability, Big Apple Bagels franchisees are required to maintain several other insurance policies, including Workers Compensation, Comprehensive General Liability, Products Liability, Cyber Liability, Property Insurance, Business Interruption, and an Umbrella Policy. The specific amounts of coverage required for these policies are also detailed in the FDD.
Big Apple Bagels has the right to periodically increase the required coverage amounts or require different or additional kinds of insurance to reflect changes in inflation, new risks, changes in law, higher damage awards, or other relevant circumstances. Franchisees must ensure that all insurance policies are issued by carriers duly admitted in the store's state with an A.M. Best rating not less than A- and acceptable to Big Apple Bagels. Franchisees must also name BAB Systems, Inc. as an additional insured on a primary and noncontributory basis and provide thirty days' prior written notice to Big Apple Bagels of any material modification, cancellation, or expiration of the policy.