What is the minimum Occurrence/Aggregate Limit required for Comprehensive or Commercial General Liability Insurance for a Buona franchise?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
hires any employees.
- (b) Employer's Liability Insurance, for employee bodily injuries, and deaths, with a limit of $500,000 each accident; and for employee disease with a limit of $500,000. Such coverage must be obtained on or before the date Franchisee hires any employees.
- (c) Comprehensive or Commercial General Liability Insurance, covering claims for bodily injury, death and property damage, including Premises and Operations, Independent Contractors, Products and Completed Operations, Personal Injury, Contractual, and Broad Form Property Damage Liability coverages, to be obtained by the date the Approved Location has been determined, with limits as f
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, franchisees must maintain Comprehensive or Commercial General Liability Insurance with specific coverage limits. This insurance must cover claims for bodily injury, death, and property damage, including various liabilities such as Premises and Operations, Independent Contractors, Products and Completed Operations, Personal Injury, Contractual, and Broad Form Property Damage Liability.
The minimum required limits are $1,000,000 per occurrence for bodily injury, death, and property damage, with a $2,000,000 general aggregate limit. Additionally, there's a $2,000,000 aggregate limit for Products/Completed operations, $1,000,000 per occurrence, and $1,000,000 for personal advertising injury. These insurance policies must be secured by the date the Approved Location has been determined.
For a prospective Buona franchisee, this means securing a comprehensive insurance policy that meets these minimum limits is a mandatory pre-opening expense. Failure to obtain and maintain this insurance coverage could result in Buona procuring the insurance on the franchisee's behalf, with the franchisee responsible for the costs, plus interest and administrative fees. Moreover, all liability insurance policies must be written on an "occurrence" policy form, and Buona must be named as an Additional Insured on a primary and non-contributory basis (except for Workers' Compensation Insurance).