What is the minimum professional liability insurance coverage required per occurrence for Camp Margaritaville franchisees?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
ch consent or approval shall be provided if the third-party system can be connected to Franchisor's systems and passes Franchisor's security risk assessment.
- (c) Franchisee's use of the CRS to connect to, interface with, or otherwise use third-party OTAs, booking systems, online travel agencies, and advertising platforms shall be at no additional fees, charges, or costs to Franchisee other than: (i) those Franchisee would incur directly usin
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, franchisees are required to maintain professional liability insurance with a minimum coverage of $10,000,000 per occurrence. This requirement is part of the insurance obligations outlined in Section 10.05(c) of the franchise agreement and is tied to the Margaritaville Standards.
This insurance coverage is intended to protect Camp Margaritaville and its franchisees from potential liabilities arising from the operation, management, and marketing of the Rental Program, as well as the development, construction, ownership, marketing, sale, or operation of dwellings. These liabilities could include claims related to personal injury, wrongful death, negligence, or property loss by rental guests or residents of the dwellings.
The specific types and amounts of insurance coverage, including deductibles, limits, carrier ratings, and policy obligations, are detailed in the Margaritaville Standards. Camp Margaritaville has the discretion to modify these insurance requirements, potentially requiring franchisees to obtain additional types of insurance or increase coverage amounts during the term of the agreement. Franchisees must ensure they meet these insurance requirements to remain compliant with the franchise agreement.
Prospective franchisees should carefully review the insurance requirements outlined in the System Standards and consult with insurance professionals to ensure they can obtain the necessary coverage. Understanding these insurance obligations is crucial for managing potential risks and protecting their investment in a Camp Margaritaville franchise.