What is the minimum combined single limit for the Automobile Liability Insurance that Caring Transitions franchisees must maintain for owned, hired, and non-owned vehicles?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
Insurance.** Before opening the franchised business, you must obtain, and maintain at all times during the term of your franchise agreement, the following insurance coverages:
All-Risk Insurance on all furniture, fixtures, equipment, supplies and other property used in the operation of the franchised business, for their full replacement cost.
Commercial General Liability Insurance covering claims for bodily and personal injury, death, property damage, product liability, and contractual liability with a minimum per occurrence limit of $1,000,000 and a minimum general aggregate limit of $1,000,000.
Professional Liability Insurance with a minimum per occurrence limit of $250,000 and a minimum general aggregate limit of $250,000.
Automobile Liability Insurance for owned, hired, and non-owned vehicles with a minimum combined single limit of $1,000,000.
Employee Dishonesty & Client Theft Insurance with a minimum limit of $25,000.
Bailee Insurance with a minimum limit of $25,000.
Worker's Compensation Insurance that complies with the statutory requirements of the state in which the franchised business is located and Employers' Liability Insurance with a minimum limit of $100,000 or, if greater, the statutory minimum limit if required by state law.
An Umbrella Policy with a $1,000,000 minimum limit.
All insurance policies must name us as an additional insured, and no policy may have a deductible greater than $1,000. You cannot open your franchise for business until you have obtained all the required insurance coverages. If you fail to obtain and maintain this insurance coverage, we have the right to obtain it on your behalf and to charge you for the cost, plus interest. You must also maintain any other insurance that may be required by your landlord or by law in your territory. You may purchase your insurance from any approved supplier, which are listed in the operations manual. We have the right to reasonably increase the required minimum insurance coverage, decrease the deductible, or require different or additional kinds of insurance to reflect inflation, changes in standards of liability, higher damage awards, or other relevant changes in circumstances. We must give you at least 30 d
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 19–21)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, franchisees are required to maintain Automobile Liability Insurance for owned, hired, and non-owned vehicles with a minimum combined single limit of $1,000,000. This insurance coverage is mandatory and must be in place before the franchisee can open their Caring Transitions business.
This requirement ensures that Caring Transitions franchisees have adequate financial protection in case of an accident involving a vehicle used in the course of business. The $1,000,000 minimum limit is designed to cover potential liabilities arising from bodily injury or property damage claims. Franchisees must secure this coverage from an approved supplier, as listed in the operations manual.
Caring Transitions also requires that all insurance policies name them as an additional insured, and no policy may have a deductible greater than $1,000. If a franchisee fails to maintain the required insurance coverage, Caring Transitions has the right to obtain the insurance on the franchisee's behalf and charge the franchisee for the cost, plus interest. Furthermore, Caring Transitions retains the right to increase the required minimum insurance coverage, decrease the deductible, or require different or additional kinds of insurance to reflect inflation, changes in standards of liability, higher damage awards, or other relevant changes in circumstances, providing at least 30 days' notice.
In addition to the Automobile Liability Insurance, Caring Transitions franchisees must also maintain other insurance coverages, including All-Risk Insurance, Commercial General Liability Insurance, Professional Liability Insurance, Employee Dishonesty & Client Theft Insurance, Bailee Insurance, Worker's Compensation Insurance, and an Umbrella Policy. These comprehensive insurance requirements highlight the importance Caring Transitions places on risk management and protecting both the franchisee and the brand from potential liabilities.