Is a claims-made policy form acceptable for the employment practices liability insurance that Bonchon franchisees are required to carry?

According to Bonchon's 2025 Franchise Disclosure Document, a claims-made policy form is acceptable for the employment practices liability insurance that franchisees must carry.

Bonchon requires franchisees to maintain employment practices liability insurance with a limit of not less than $250,000. The FDD explicitly states that a claims-made policy form is acceptable for this particular insurance requirement.

A claims-made policy covers claims that are made during the policy period, regardless of when the incident occurred. This differs from an occurrence policy, which covers incidents that occur during the policy period, even if the claim is made later. The acceptance of a claims-made policy provides Bonchon franchisees with flexibility in meeting their insurance obligations.