What is the required umbrella/excess liability limit per occurrence 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 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 12–13)
What This Means (2025 FDD)
According to Carbones Pizzeria's 2025 Franchise Disclosure Document, franchisees are required to maintain umbrella/excess liability insurance with a limit of $1,000,000 per occurrence. This insurance is in addition to other required policies such as commercial general liability, business personal property, business motor vehicle liability, workers' compensation, and liquor liability (if applicable).
The purpose of umbrella/excess liability insurance is to provide an extra layer of protection beyond the limits of the primary insurance policies. This can be crucial in the event of a major claim or lawsuit where the damages exceed the coverage limits of the other policies. By requiring this coverage, Carbones Pizzeria aims to protect both the franchisee and the brand from significant financial losses due to unforeseen events.
Franchisees should factor the cost of this insurance coverage into their overall business expenses. It is important to shop around and compare quotes from different insurance providers to ensure they are getting the best possible rate while still meeting the minimum coverage requirements set by Carbones Pizzeria. Franchisees must also name Carbones Pizzeria as an additional insured on their policies and provide 30 days' notice before any changes, cancellation, or termination of any policy.