What is the minimum required amount for General Liability insurance coverage 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. This insurance must be written on an occurrence basis, covering activities related to the property. This includes coverage for contractual liability, premises operations, products liability, personal injury, advertising injury liability, and broad form property damage liability.
The minimum limit of liability required for this coverage is $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.
In addition to General Liability insurance, Camp Margaritaville also mandates other insurance coverages, such as Business Interruption Insurance, Automobile Liability Insurance ($5,000,000 where applicable), Worker's Compensation Insurance (as required by state law), Commercial Property Insurance, and other specific types of coverage like Flood Insurance, Earthquake Insurance, Boiler and Machinery/Equipment Breakdown Insurance, Crime Insurance, Terrorism Insurance, Cyber Liability Insurance ($3,500,000), and Employment Practices Liability Insurance ($1,000,000). Franchisees must ensure they obtain all required insurance policies to operate their Camp Margaritaville franchise legally and in compliance with the franchise agreement.