What is the minimum aggregate liability coverage required for comprehensive general liability insurance for a Canine Dimensions franchise?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
- (1) comprehensive general liability coverage against claims for bodily and personal injury, death, and property damage caused by or occurring in conjunction with the operation of your Franchised Business or your conduct of business under the Franchise Agreement under one or more policies of insurance containing minimum liability coverage of $1,000,000 per occurrence and $2,000,000 aggregate, including product / completed operations insurance;
- (2) automobile liability (split limit) of $250,000 per person, $500,000 per accident, and $100,000 property damage for any vehicles used in the operation of the Franchised Business;
- (3) an umbrella liability insurance policy with minimum liability coverage of $2,000,000;
- (4) employer's liability of $1,000,000 per incident and Workers' Compensation or other employer's liability insurance as well as such other insurance as may be required by statute or rule in the state in which your Franchised Business is located;
- (5) professional liability insurance of $25,000 per incident; and
- (6) any other insurance that we may require in the future or that may be required according to the law or the terms of your lease.
You must maintain all required policies in force during the entire term of the Franchise Agreement and any renewal terms. We may periodically increase or decrease the amounts of coverage required under these insurance policies and require different or additional kinds of insurance at any time to reflect inflation, identification of new risks, changes in law or standards of liability, higher damage awards, or other relevant changes in circumstances. Each insurance policy must name us (and, if we request, our directors, employees or shareholders) as additional insureds and must provide us with 30 days' advance written notice of any material modification, cancellation or expiration of the policy.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 14–17)
What This Means (2025 FDD)
According to Canine Dimensions's 2025 Franchise Disclosure Document, franchisees must maintain comprehensive general liability insurance coverage with a minimum aggregate liability coverage of $2,000,000. This insurance protects against claims for bodily and personal injury, death, and property damage caused by or occurring in conjunction with the operation of the franchised business. The policy must also include product/completed operations insurance.
In addition to the aggregate limit, Canine Dimensions requires a per occurrence minimum liability coverage of $1,000,000. This means that for each individual incident, the insurance policy must cover up to $1,000,000 in damages. The aggregate limit of $2,000,000 represents the total amount the insurance company will pay out over the policy term, regardless of the number of incidents.
It is important to note that Canine Dimensions may periodically increase or decrease the amounts of coverage required under these insurance policies and require different or additional kinds of insurance at any time. This could be due to factors such as inflation, identification of new risks, changes in law or standards of liability, higher damage awards, or other relevant changes in circumstances. Franchisees must maintain all required policies in force during the entire term of the Franchise Agreement and any renewal terms. Each insurance policy must name Canine Dimensions as an additional insured and must provide them with 30 days' advance written notice of any material modification, cancellation or expiration of the policy.