What is the minimum per occurrence and aggregate limit for the Umbrella/Excess liability policy that a Bonchon franchisee must maintain?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
- [4] You must obtain and maintain the following insurance:
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- Umbrella/Excess liability policy with limits not less than $2,000,000 per occurrence and in the aggregate;
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Source: Item 6 — OTHER FEES (FDD pages 13–24)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, franchisees are required to maintain an Umbrella/Excess liability policy. This policy must have a minimum limit of $2,000,000 per occurrence and $2,000,000 in the aggregate.
This insurance coverage is designed to provide an extra layer of protection beyond the franchisee's other liability policies. The "per occurrence" limit refers to the maximum amount the insurance company will pay for a single incident, while the "aggregate" limit is the total amount the insurer will pay out during the policy term (usually one year), regardless of the number of claims.
Maintaining adequate insurance coverage is a standard requirement in franchising to protect both the franchisee and the franchisor from potential financial losses due to unforeseen events. Franchisees should factor in the cost of this insurance when evaluating the overall investment required to start and operate a Bonchon franchise.