What specific coverages must be included in the Comprehensive General Liability Insurance for a Camp Margaritaville location?
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 must maintain Comprehensive General Liability Insurance. This insurance must be written on an occurrence basis, covering activities related to the property.
The required coverage includes contractual liability, premises operations, products liability, personal injury, advertising injury liability, and broad form property damage liability. The minimum limits of liability are $5,000,000 per occurrence and $5,000,000 annual aggregate.
Camp Margaritaville also mandates other insurance coverages, such as Business Interruption Insurance, Automobile Liability Insurance (where applicable) with $5,000,000 coverage, Worker's Compensation Insurance as required by state law, Commercial Property Insurance covering 100% of the insurable replacement value, Flood Insurance (where required) covering 100% of the completed property value, Earthquake Insurance (where required) covering not less than 75% of the project's hard cost value, Boiler and Machinery/Equipment Breakdown Insurance covering not less than 100% of the replacement costs of those items, Crime Insurance, Terrorism Insurance, Cyber Liability Insurance with $3,500,000 coverage, and Employment Practices Liability Insurance with $1,000,000 coverage.