What does the employer liability insurance cover for a Burros Fries franchise?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
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- Employer liability insurance that covers you and your Business against claims made by employees for work-related bodily injury or disease, other than liability imposed on you and your Business by workers' compensation law;
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- Workers' Compensation insurance in amounts provided by applicable law or, if permissible under applicable law, any legally appropriate alternative providing substantially similar compensation to injured workers, subject to the conditions set forth in the Franchise Agreement.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 21–25)
What This Means (2024 FDD)
According to Burros Fries' 2024 Franchise Disclosure Document, employer liability insurance covers the franchisee and their business against claims made by employees for work-related bodily injury or disease. This coverage is separate from what is covered by workers' compensation law.
Workers' compensation insurance, which is also required, covers liabilities imposed by workers' compensation law or any legally appropriate alternative providing substantially similar compensation to injured workers.
In addition to employer liability and workers' compensation, Burros Fries franchisees must also maintain other insurance coverage, including general liability insurance ($2,000,000 per occurrence and aggregate), property casualty insurance ($1,000,000 minimum), and product liability insurance ($2,000,000 per occurrence and $4,000,000 aggregate).