What is the minimum per occurrence limit for general liability insurance for a Burros Fries franchise?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
proval requests; andadminister the System Advertising Fund.
13. OBLIGATIONS OF FRANCHISEE RELATING TO INSURANCE
A. Overall Coverage Required
Before Franchisee opens a Burros & Fries Franchised Business, Franchisee must purchase insurance coverage from a responsible carrier with a performance rating of A or higher as rated in the most recent edition of Best Insurance Reports (or comparable criteria as we may specify) and Franchisee must maintain such insurance throughout the duration of the initial term of the Franchise Agreement and any renewal terms. Franchisee shall list us as additional insured on all its insurance policies. Franchisee will procure and maintain general liability insurance with a minimum policy limit of $2,000,000 per occurrence and $4,000,000 aggregate (this policy should include general tort, premises damage, personal advertising injury and product liability insurance which covers Franchisee for damages 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 Burros Fries's 2024 Franchise Disclosure Document, franchisees must secure general liability insurance with a minimum policy limit of $2,000,000 per occurrence and $4,000,000 in aggregate coverage. This insurance should encompass general tort, premises damage, personal advertising injury, and product liability, protecting the franchisee from damages resulting from injuries caused by the products they distribute.
In addition to general liability insurance, Burros Fries requires franchisees to maintain property and casualty insurance with a minimum policy limit of $2,000,000 or as specified by the franchisor. Franchisees must also obtain "All Risks" or "Special Form" insurance to cover the full replacement cost of the premises and all other property. Other required insurance includes employer liability insurance, automobile liability insurance with minimum coverage of $100,000 combined single limit for bodily and property damage (or in accordance with state guidelines), business interruption insurance to cover loss of earnings for at least 180 days, and statutory workers' compensation insurance with limits greater than $100,000 or the minimum limits required by law.
Burros Fries also mandates that franchisees list the franchisor as an additional insured on all insurance policies. Franchisees are responsible for providing certified copies of these insurance policies to Burros Fries either before opening the business or within 180 days of signing the Franchise Agreement, whichever comes first. Burros Fries retains the right to modify the required minimum coverage limits, including increasing them, and advises franchisees to consult with their insurance advisor to ensure they have adequate coverage to protect their business.