factual

What is the required 'General Aggregate' insurance coverage amount per Body20 studio?

Body20 Franchise · 2025 FDD

Answer from 2025 FDD Document

the types of insurance and the minimum policy limits specified in the Manuals. Currently, we require you to obtain and maintain:

Comprehensive General Liability and Professional Liability Insurance. You must maintain comprehensive general liability and professional liability insurance with the following minimum limits:

    1. Each Occurrence: $1,000,000
    1. General Aggregate: $5,000,000 (per Studio)
    1. Products Completed Operations Aggregate: $5,000,000
    1. Personal and Advertising Injury: $1,000,000
    1. Participant Legal Liability: $1,000,000
    1. Professional Liability: $1,000,000
    1. Damage to Premises Rented to You: $1,000,000
    1. Employee Benefits Liability (each employee): $1,000,000
    1. Employee Benefits Liability (aggregate): $2,000,000
    1. Medical Expense (any one person): $5,000
    1. Sexual Abuse and Molestation: included (not excluded)

Such insurance will include coverage for contractual liability (for liability assumed under an "insured contract"), products-completed operations, personal and advertising injury, premises liability, third party property damage and bodily injury liability (including death).

Automobile Liability Insurance. You must maintain automobile liability insurance covering liability arising from the use, operation, or maintenance of any vehicle (including owned, leased, hired, or non-owned vehicles) used in connection with the ownership or operation of the Studio. This requirement applies only if such vehicles are used in the course of operating the Studio. Coverage limits must meet or exceed the minimum compulsory requirements in your state;

Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 32–37)

What This Means (2025 FDD)

According to Body20's 2025 Franchise Disclosure Document, franchisees must maintain comprehensive general liability and professional liability insurance. The minimum required coverage for 'General Aggregate' is $5,000,000 per Body20 studio.

In addition to the General Aggregate coverage, Body20 franchisees must also maintain coverage for 'Each Occurrence' at $1,000,000 and 'Products Completed Operations Aggregate' at $5,000,000. Further insurance requirements include 'Personal and Advertising Injury' at $1,000,000, 'Participant Legal Liability' at $1,000,000, and 'Professional Liability' at $1,000,000. There are also specific coverage amounts for 'Damage to Premises Rented to You', 'Employee Benefits Liability', 'Medical Expense', and 'Sexual Abuse and Molestation'.

Body20 requires that all insurance carriers must be rated A or higher by A.M. Best and Company, Inc. These insurance policies must be in effect on or before the deadlines Body20 specifies. Furthermore, all coverage must be on an "occurrence" basis, except for the employment practices liability insurance coverage, which is on a "claims made" basis. Body20 also requires that they must be named as an additional insured under each policy.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.