What are the required limits for Buona franchisee's Employer's Liability Insurance for employee bodily injuries and deaths?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
actory to Franchisor, and shall include, at a minimum the following coverage:
- (a) Workers' Compensation Insurance, with statutory limits as required by the laws and regulations applicable to the employees of Franchisee who are engaged in the performan
Source: Item 23 — RECEIPTS (FDD pages 78–356)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, franchisees are required to maintain Employer's Liability Insurance. This insurance covers employee bodily injuries and deaths, ensuring that Buona franchisees are protected against potential liabilities arising from workplace incidents.
The minimum coverage limits for Employer's Liability Insurance are $500,000 for each accident and $500,000 for employee disease. This means that in the event of an accident causing bodily injury to an employee, the insurance policy will cover up to $500,000 per accident. Similarly, for employee disease, the policy will cover up to $500,000.
Buona franchisees must secure this insurance coverage on or before the date they hire any employees. This requirement ensures that the business is protected from the outset, providing financial security in case of unforeseen events. Failing to obtain and maintain the required insurance could result in the franchisor procuring the insurance on the franchisee's behalf, with the franchisee responsible for the costs, interest, and administrative fees.