If applicable, what is the required amount for Automobile Liability Insurance for a Camp Margaritaville franchise?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
ure exists) | | Professional Errors and Omissions | An amount commensurate with the risks of the project |
Insurance Coverages Required While in Operation:
| Type of Coverage | Amount |
|---|---|
| Comprehensive General Liability Insurance | Written on an occurrence basis covering activities with respect to the property which includes but is not limited to coverage for contractual liability, premises operations, products liability, personal injury, advertising injury liability, and broad form property damage liability with limits of liability of at least $5,000,000 per occurrence and $5,000,000 annual aggregate. |
| Business Interruption Insurance | Covering loss of profits to you, royalties, advertising fees, and liquidated damages that may become payable as a result of a casualty or condemnation, and necessary to pay continuing expenses for a minimum period of not less than the total time necessary to rebuild to prior condition, and for an additional extended period of indemnify equal to 3 years thereafter |
| Automobile Liability Insurance (where | $5,000,000 |
| applicable) | |
| Worker's Compensation Insurance | As required by state law |
| Commercial Property Insurance | Covering 100% of the insurable replacement value of the building and its contents and for full recovery of the net profits and continuing expenses of the property (including rental value) for a 12 month period |
| Flood Insurance (where required) | Covering 100% of the completed value of the property |
| Earthquake Insurance (where required) | Covering not less than 75% of the project's hard cost value |
| Boiler and Machinery/Equipment Breakdown | Covering not less than 100% of the replacement |
| Insurance | costs of those items |
| Type of Coverage | Amount |
| ------------------------------------------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| Crime Insurance | $250,000 for employee dishonesty, $50,000 each for forgery and alteration, money and securities (inside), money and securities (outside), robbery and safe burglary of property (other than money and securities), computer fraud, counterfeit paper currency |
| Terrorism Insuran |
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 40–45)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, franchisees are required to maintain Automobile Liability Insurance where applicable. The minimum coverage amount required is $5,000,000.
Camp Margaritaville also requires franchisees to secure insurance coverage from companies that meet specific minimum standards, including being qualified to conduct business in the resort's jurisdiction and having a Best rating of at least A. Furthermore, Camp Margaritaville and any other parties they designate must be named as additional insureds on all insurance policies, and evidence of coverage must be provided to the franchisor.
In addition to Automobile Liability Insurance, Camp Margaritaville mandates several other types of insurance coverage, including Comprehensive General Liability Insurance, Business Interruption Insurance, Worker's Compensation Insurance, Commercial Property Insurance, and others depending on specific location-based requirements like flood or earthquake insurance. The specific amounts and conditions for these other insurance types are detailed in the FDD, and franchisees must ensure they meet all specified requirements to remain compliant with the franchise agreement.