What is the required umbrella/excess liability insurance aggregate limit 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 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 13–14)
What This Means (2025 FDD)
According to Carbones Pizzeria's 2025 Franchise Disclosure Document, franchisees are required to maintain umbrella/excess liability insurance. The aggregate limit for this insurance is $1,000,000. This coverage is in addition to other required insurance policies, such as commercial general liability, business personal property, business motor vehicle liability, workers' compensation, and liquor liability (if applicable).
The umbrella/excess liability insurance provides an extra layer of protection beyond the limits of the other policies. Should a claim exceed the coverage limits of the primary policies, the umbrella policy would cover the excess, up to its aggregate limit. This type of insurance is crucial for protecting the franchisee's assets in the event of a catastrophic incident.
Franchisees should consult with their insurance providers to ensure they obtain the required coverage and understand the terms and conditions of each policy. Maintaining adequate insurance coverage is a critical obligation for Carbones Pizzeria franchisees, as it protects both the franchisee and the franchisor from potential financial losses due to unforeseen events.