What aggregate limit is required for the Commercial General Liability insurance for a Bombs Away franchise?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
rchases and leases:
- A. Insurance. You must obtain insurance as described in the Franchise Agreement and in our Manual, which includes (i) Commercial General Liability insurance, including products liability coverage, and broad form commercial liability coverage, written on an "occurrence" policy form in an amount of not less than $1,000,000 single limit per occurrence and $2,000,000 aggregate limit, (ii) Business Automobile Liability insurance including owned, leased, non-owned and hired automobiles coverage in an amount of not less than $1,000,000, and (iii) Workers Compensation coverage as required by state law. Your policies (other than Workers Compensation) must list us and our affiliates as an additional insured, must include a waiver of subrogation in favor of us and our affiliates, must be primary and non-contributing with any insurance carried by us or our affiliates, and must stipulate that we receive 30 days' prior written not
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 15–17)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, franchisees must maintain Commercial General Liability insurance with specific coverage limits. This insurance must include product liability coverage and broad form commercial liability coverage, written on an "occurrence" policy form.
The required coverage includes a minimum of $1,000,000 single limit per occurrence and $2,000,000 aggregate limit. Additionally, franchisees must also carry Business Automobile Liability insurance with a limit of not less than $1,000,000, covering owned, leased, non-owned, and hired automobiles. Workers Compensation coverage is also mandated, as required by state law.
Bombs Away requires that the insurance policies, excluding Workers Compensation, list Bombs Away and its affiliates as additional insured parties. These policies must also include a waiver of subrogation in favor of Bombs Away and its affiliates. Furthermore, the franchisee's insurance must be primary and non-contributing with any insurance held by Bombs Away or its affiliates. Finally, Bombs Away must receive 30 days' prior written notice of any policy cancellation. These stipulations ensure that Bombs Away is protected from potential liabilities arising from the franchisee's operations.