What is the required coverage amount for Cyber Liability Insurance for a Camp Margaritaville franchise?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
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 Cyber Liability Insurance with a minimum coverage of $3,500,000. This insurance is intended to protect the business from financial losses resulting from cyberattacks, data breaches, and other technology-related liabilities.
Maintaining this level of coverage is crucial in today's digital landscape, where businesses are increasingly reliant on technology and vulnerable to cyber threats. A significant data breach or cyberattack could result in substantial financial losses, legal liabilities, and reputational damage for a Camp Margaritaville franchise. The $3,500,000 coverage requirement aims to provide a financial safety net to mitigate these potential risks.
Camp Margaritaville specifies that franchisees must purchase insurance policies from carriers qualified to do business in the location of the resort and have a Best rating of at least A. The franchisor must approve all insurance companies used by the franchisee. Franchisees must also provide evidence of their insurance coverage to Camp Margaritaville, ensuring compliance with the insurance requirements outlined in the Franchise Agreement and the Manual.