What is the minimum aggregate limit for Commercial General Liability insurance required for a Bombs Away franchise?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
insurance policies in the types and amounts as specified by Bombs Away Franchising in the Manual. If not specified in the Manual, Franchisee shall maintain at least the following insurance coverage:
- (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.
- (b) Franchisee's policies (other than Workers Compensation) must (1) list Bombs Away Franchising and its affiliates as an additional insured, (2) include a waiver of subrogation in favor of Bombs Away Franchising and its affiliates, (3) be primary
Source: Item 22 — CONTRACTS (FDD pages 35–36)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, franchisees must maintain Commercial General Liability insurance. This insurance must include product liability coverage and broad form commercial liability coverage. The policy must be written on an "occurrence" policy form.
The minimum coverage required is $1,000,000 single limit per occurrence and $2,000,000 aggregate limit. This means that for any single incident, the insurance will cover up to $1,000,000, and the total coverage available over the policy period is $2,000,000.
In addition to Commercial General Liability insurance, Bombs Away franchisees are required to maintain Business Automobile Liability insurance of no less than $1,000,000 and Workers Compensation coverage as required by state law. The Commercial General Liability and Business Automobile Liability insurance policies must list Bombs Away Franchising and its affiliates as additional insured, include a waiver of subrogation, be primary and non-contributing with any insurance carried by Bombs Away, and stipulate that Bombs Away receive 30 days' prior written notice of cancellation.