What is the per occurrence coverage amount for commercial general liability and professional liability insurance for a Brain Balance center?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
mercial space would need to be approved through us.
- Note 6: The figures in the chart are based upon the estimated average premiums calculated by the insurance brokers designated by us who have negotiated rates with carriers nationally as first years' premium for Commercial general liability and Professional Liability coverage, including, but not limited to, education services ($1,000,000 per occurrence and $3,000,000 in the aggregate), commercial automobile liability insurance covering vehicles that are owned, nonowned, or hired by the Franchised Business, providing bodily injury and property damage, Employment Practices Liability Insurance ("EPLI"), and workers compensatio
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 19–30)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, franchisees are required to maintain commercial general liability and professional liability insurance. The FDD specifies that the estimated average premiums are calculated by insurance brokers designated by Brain Balance, who have negotiated rates with carriers nationally for the first year's premium. This coverage includes education services with a limit of $1,000,000 per occurrence and $3,000,000 in the aggregate.
In practical terms, this means a Brain Balance franchisee must secure insurance policies that provide at least $1,000,000 of coverage for each individual incident (per occurrence) and an overall coverage limit of $3,000,000 for all claims during the policy period (aggregate). This insurance is intended to protect the franchisee from potential liabilities arising from the operation of the Brain Balance center, including claims related to the educational services provided.
The FDD also mentions that the insurance coverage includes commercial automobile liability insurance, Employment Practices Liability Insurance (EPLI), and workers compensation and disability insurance, if required. These additional coverages suggest that Brain Balance franchisees need a comprehensive insurance plan to address various potential risks associated with running the business. Franchisees should consult with the insurance brokers designated by Brain Balance to ensure they obtain the appropriate coverage levels and understand the terms and conditions of each policy.
It's important to note that these figures are based on estimated average premiums for the first year. Actual insurance costs may vary depending on factors such as the franchisee's location, claims history, and the specific insurance carrier. Franchisees should factor these insurance costs into their initial investment and ongoing operating expenses.