What are the limits of the General Liability Insurance coverage provided by the Buildingstars Insurance Program Fee?

S collects for the FRANCHISEE.

• D. Administration Fee. FRANCHISEE shall pay to BUILDINGSTARS monthly (by the fifteenth (15th) day of the month following the month in which the sales were invoiced), an Administration Fee equal to five percent (5%) of the Gross Revenue from the Business throughout the term of this Agreement. BUILDINGSTARS will withhold the Administration Fee from the amount of billings BUILDINGSTARS collects for the FRANCHISEE, as more fully described in Section VI.D below. No part of the Administration Fee is refundable.
• E. Insurance Program Fee. FRANCHISEE is required to participate in the insurance program developed for BUILDINGSTARS and its franchisees. Although BUILDINGSTARS is obligated to pay the insurance premiums for FRANCHISEE'S coverage, FRANCHISEE is obligated to pay to BUILDINGSTARS monthly (by the fifteenth (15th) day of the month following the month in which the sales were invoiced), an Insurance Program Fee to defray the costs incurred by BUILDINGSTARS. The Insurance Program Fee is subject to change.

At the present time, the Insurance Program Fee is three and one-half percent (3 ½%) of Gross Revenue from the Business, which will provide only the following coverage for the FRANCHISEE:

• (a) Worker's Compensation;
• (b) General Liability Insurance with limits of $1,000,000 per occurrence; $2,000,000 products/completed operations aggregate, and $2,000,000 aggregate; and
  • (c) Non-owned auto insurance.

The insurance provided for the Insurance Program Fee is the minimum insurance requirement and FRANCHISEE should consult with its own insurance agent to determine if the kinds and amounts of coverage are adequate to protect FRANCHISEE'S interests.

Source: Item 23 — RECEIPT (FDD pages 43–217)