What is the minimum general aggregate limit for Commercial General Liability Insurance that a Caring Transitions franchisee must maintain?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
ing fund.
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 must maintain Commercial General Liability Insurance with a minimum general aggregate limit of $1,000,000. This insurance coverage is required to cover claims related to bodily and personal injury, death, property damage, product liability, and contractual liability.
This requirement ensures that Caring Transitions franchisees have adequate financial protection against potential liabilities arising from their business operations. Maintaining this level of insurance coverage is a condition of the franchise agreement, and failure to do so can result in Caring Transitions obtaining the insurance on the franchisee's behalf and charging them for the cost, plus interest.
In addition to the general aggregate limit, the Commercial General Liability Insurance must also have a minimum per occurrence limit of $1,000,000. Furthermore, all insurance policies must name Caring Transitions as an additional insured, and no policy may have a deductible greater than $1,000. These stipulations are designed to protect both the franchisee and Caring Transitions from financial losses due to unforeseen events.
Caring Transitions also 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 franchisees with at least 30 days' notice.