Does Bombs Away require Workers Compensation coverage, and if so, under what conditions?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
pecific Obligations
The following are our current specific obligations for purchases 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 are required to obtain Workers Compensation coverage. The specific requirement for this coverage is determined by state law. This means that Bombs Away franchisees must comply with the Workers Compensation laws of the state in which they operate their franchise.
In addition to Workers Compensation, Bombs Away franchisees must also secure other types of insurance. These include Commercial General Liability insurance with a minimum of $1,000,000 per occurrence and $2,000,000 in aggregate, as well as Business Automobile Liability insurance with a minimum of $1,000,000 coverage.
Bombs Away also requires that the Commercial General Liability and Business Automobile Liability insurance policies list Bombs Away and its affiliates as additional insured parties. These policies must include a waiver of subrogation in favor of Bombs Away and its affiliates, be primary and non-contributing with any insurance carried by Bombs Away or its affiliates, and stipulate that Bombs Away receive 30 days' prior written notice of cancellation. However, these stipulations do not apply to the Workers Compensation policy.