What is the required 'Each Occurrence' insurance coverage amount for a Body20 franchise?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 8: RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES]
Comprehensive General Liability and Professional Liability Insurance. You must maintain comprehensive general liability and professional liability insurance with the following minimum limits:
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- Each Occurrence: $1,000,000
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- General Aggregate: $5,000,000 (per Studio)
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- Products Completed Operations Aggregate: $5,000,000
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- Personal and Advertising Injury: $1,000,000
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- Participant Legal Liability: $1,000,000
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- Professional Liability: $1,000,000
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- Damage to Premises Rented to You: $1,000,000
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- Employee Benefits Liability (each employee): $1,000,000
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- Employee Benefits Liability (aggregate): $2,000,000
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- Medical Expense (any one person): $5,000
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- 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).
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 'Each Occurrence' coverage limit is $1,000,000.
In addition to the 'Each Occurrence' coverage, Body20 franchisees must also maintain other coverage limits, including a General Aggregate of $5,000,000 per studio, a Products Completed Operations Aggregate of $5,000,000, and Personal and Advertising Injury coverage of $1,000,000. Further, franchisees must maintain Participant Legal Liability and Professional Liability coverage of $1,000,000 each, Damage to Premises Rented to You coverage of $1,000,000, Employee Benefits Liability coverage of $1,000,000 per employee and $2,000,000 in the aggregate, Medical Expense coverage of $5,000 for any one person, and Sexual Abuse and Molestation coverage must be included.
Body20 requires that the insurance policy includes coverage for contractual liability, products-completed operations, personal and advertising injury, premises liability, third-party property damage, and bodily injury liability, including death. Franchisees must also maintain automobile liability insurance with recommended coverage of at least $1,000,000 per occurrence. Additionally, workers' compensation insurance is required as per applicable state law, including employer's liability coverage with specific limits for bodily injury and disease.
It is important for prospective Body20 franchisees to fully understand these insurance requirements and to consult with an insurance professional to ensure they obtain adequate coverage. Failure to maintain the required insurance coverage could result in a breach of the franchise agreement and potential liability for any claims or damages.