Under what condition is Pollution Liability insurance required for a Camp Margaritaville franchise, and what is the minimum coverage amount?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
o business in the jurisdiction in which your Resort is located and that have a Best rating of at least A. We must approve all insurance companies that you use.
Currently, we require the following types and amounts of insurance coverage:
Insurance Coverages Required During Construction:
| Type of Insurance | Coverage Required |
|---|---|
| Worker's Compensation | Minimum required by state law |
| Employer’s Liability | $1,000,000 |
|---|---|
| General Liability | $15,000,000 |
| Automobile Liability | $2,000,000 |
| Builder’s Risk | 100% of the completed value of the property |
| Flood | 100% of the completed value of the property (where required) |
| Earthquake | Not less than 75% of the project’s hard cost value (where required) |
| Pollution Liability | $1,000,000 (if pollution exposure 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 |
| ------------------------------------------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 40–45)
What This Means (2025 FDD)
Based on the 2025 Camp Margaritaville Franchise Disclosure Document, the excerpt provided does not specify the conditions under which Pollution Liability insurance is required, nor does it state the minimum coverage amount. The document does outline various insurance coverages required during construction and operation, such as Comprehensive General Liability Insurance, Business Interruption Insurance, Automobile Liability Insurance, Worker's Compensation Insurance, Commercial Property Insurance, Flood Insurance, Earthquake Insurance, Boiler and Machinery/Equipment Breakdown Insurance, Crime Insurance, Terrorism Insurance, Cyber Liability Insurance and Employment Practices Liability Insurance.
For example, Comprehensive General Liability Insurance requires at least $5,000,000 per occurrence and $5,000,000 annual aggregate. Cyber Liability Insurance requires $3,500,000 coverage.
To determine if Pollution Liability insurance is required for a Camp Margaritaville franchise and the minimum coverage amount, a prospective franchisee should consult the Franchise Agreement, the Manual, or directly contact the franchisor for clarification. This information is crucial for understanding the full scope of insurance obligations and potential financial responsibilities.