What is the minimum limit for employer liability insurance for a Burros Fries franchise?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
es that result in injury from products Franchisee distributes). Plus, property and casualty insurance with a minimum policy limit of $2,000,000 or an amount specified by the us.
Franchisee must also procure and maintain "All Risks" or "Special Form" insurance (coverage for the full cost of replacement of the premises and all other property); employer liability insurance, automobile liability insurance with coverage of owned and hired vehicles with minimum coverage in amounts not less than $100,000 combined single limit for bodily and property damage (or what is in accordance with Franchisee's state guidelines); business interruption insurance to fully insure loss of earnings for a period of one
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to the 2024 Burros Fries Franchise Disclosure Document, franchisees must secure employer liability insurance. The minimum coverage required is greater than $100,000 or the minimum limits required by law. This means a franchisee must, at a minimum, meet the state's legal requirements for employer liability coverage, but if those requirements are less than $100,000, they must obtain a policy with at least $100,000 in coverage.
This insurance protects Burros Fries franchisees from financial losses if an employee sues the business for work-related injuries or illnesses not covered by workers' compensation. It is important to note that the franchisor reserves the right to increase the minimum coverage limits in the future, so franchisees should be prepared for potential adjustments to their insurance costs.
Prospective franchisees should consult with an insurance advisor to determine the appropriate level of coverage needed to adequately protect their Burros Fries business, as the franchisor explicitly states that they make no warranty that the required insurance amounts are adequate to fully protect the franchisee's interests. Franchisees must also provide Burros Fries with certified copies of their insurance policies either before opening their business or within 180 days of signing the Franchise Agreement.