What is the minimum limit for Bailee Insurance that a Caring Transitions franchisee must maintain?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
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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 mi
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 secure and maintain Bailee Insurance with a minimum limit of $25,000 throughout the term of their franchise agreement. This insurance coverage is one of several that Caring Transitions requires franchisees to obtain before opening their business. Failing to maintain the required insurance allows Caring Transitions to obtain the necessary coverage on the franchisee's behalf and charge the franchisee for the cost, including interest.
The Bailee Insurance protects against loss or damage to clients' property that is temporarily in the franchisee's care, custody, or control. Given the nature of Caring Transitions' services, which involve handling clients' possessions during relocation, downsizing, or estate liquidation, this insurance is crucial. The $25,000 minimum limit provides a financial safety net for potential claims arising from damage or loss of client property.
In addition to Bailee Insurance, Caring Transitions mandates other insurance coverages, including Commercial General Liability Insurance with minimum per occurrence and general aggregate limits of $1,000,000 each, Professional Liability Insurance with minimum per occurrence and general aggregate limits of $250,000 each, Automobile Liability Insurance with a minimum combined single limit of $1,000,000, and Employee Dishonesty & Client Theft Insurance with a minimum limit of $25,000. Franchisees must also carry Worker's Compensation Insurance, Employers' Liability Insurance, All-Risk Insurance, and an Umbrella Policy with a $1,000,000 minimum limit. All policies must name Caring Transitions as an additional insured and have a deductible no greater than $1,000.
Caring Transitions retains the right to modify the required minimum insurance coverage, decrease the deductible, or mandate different or additional insurance types to reflect factors like inflation or changes in liability standards. They must provide franchisees with at least 30 days' notice of such changes. Prospective franchisees should factor in the cost of these insurance requirements when evaluating the overall investment and operational expenses associated with a Caring Transitions franchise.