What are the minimum coverage limits for Comprehensive General Liability Insurance required 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, advertis |
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 Comprehensive General Liability Insurance with specific coverage limits. This insurance must be written on an occurrence basis, covering activities related to the property. This 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.
The minimum limits of liability for this coverage are $5,000,000 per occurrence and $5,000,000 annual aggregate. This means that for each individual incident, the insurance policy must cover up to $5,000,000, and the total coverage available for all incidents within a year must also be $5,000,000.
Camp Margaritaville also mandates that franchisees purchase insurance coverage from companies that meet the franchisor's minimum standards, with a Best rating of at least A. Furthermore, all insurance policies must name Camp Margaritaville and any other parties they designate as additional insureds. Franchisees must provide evidence of their insurance coverage to Camp Margaritaville, ensuring that the franchisor is aware of and protected by the franchisee's insurance policies.