What is the minimum limit per occurrence for umbrella/excess liability insurance required for a Carbones Pizzeria franchise?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
| Commercial General Liability | $1,000,000 limit per occurrence $2,000,000 aggregate |
|---|---|
| Business Personal Property | Replacement cost coverage |
| Business Motor Vehicle | $1,000,000 combined single limit of liability per occurrence |
| Liability | $1,000,000 uninsured/underinsured motorist coverage |
| Workers’ Compensation | Policy limits pursuant to applicable state law |
| Umbrella/Excess Liability | $1,000,000 limit per occurrence $1,000,000 aggregate |
Source: Item 23 — RECEIPTS (FDD pages 30–116)
What This Means (2025 FDD)
According to the 2025 Carbones Pizzeria Franchise Disclosure Document, a franchisee must maintain umbrella/excess liability insurance with a minimum limit of $1,000,000 per occurrence. Additionally, the policy must have a $1,000,000 aggregate limit.
This insurance coverage is designed to protect both the franchisee and Carbones Pizzeria from significant financial losses resulting from lawsuits or other liabilities that exceed the limits of the franchisee's other insurance policies. By requiring this level of coverage, Carbones Pizzeria aims to mitigate potential risks associated with operating a franchise.
It is important for prospective franchisees to factor in the cost of this insurance coverage when evaluating the overall investment required to start and operate a Carbones Pizzeria franchise. Franchisees should consult with an insurance professional to obtain quotes and ensure they have adequate coverage to meet the franchisor's requirements and protect their business interests.