What is the minimum policy limit for professional liability insurance (optional) for a Burros Fries franchise?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
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state guidelines;
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- Professional liability insurance (optional) that covers you for damages that you create that do not result in property or bodily injury with a minimum policy limit of $500,000
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 21–25)
What This Means (2024 FDD)
According to Burros Fries's 2024 Franchise Disclosure Document, professional liability insurance is optional. If a franchisee chooses to obtain this coverage, it should cover damages that do not result in property or bodily injury. The minimum policy limit for professional liability insurance is $500,000, or another amount that Burros Fries may reasonably specify.
This type of insurance protects the franchisee from damages they create that do not involve property damage or bodily injury. It is important to note that while this insurance is optional, Burros Fries retains the right to specify a different coverage amount, which franchisees would need to adhere to if they choose to carry this insurance.
Prospective franchisees should discuss with Burros Fries the specific circumstances under which professional liability insurance might be beneficial and whether Burros Fries anticipates requiring a different coverage amount in the future. Understanding these potential requirements will help franchisees make informed decisions about their insurance needs and budget.