What is the minimum per occurrence limit for Professional Liability 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 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 Professional Liability Insurance with a minimum per occurrence limit of $250,000. They must also maintain a minimum general aggregate limit of $250,000 for this insurance.
In addition to Professional Liability Insurance, Caring Transitions franchisees are required to obtain and maintain several other insurance coverages, including All-Risk Insurance, Commercial General Liability Insurance, Automobile Liability Insurance, Employee Dishonesty & Client Theft Insurance, Bailee Insurance, Worker's Compensation Insurance, Employers' Liability Insurance, and an Umbrella Policy. These various insurance policies protect both the franchisee and Caring Transitions from potential liabilities and losses associated with operating the business.
The FDD specifies minimum coverage limits for each type of insurance, and all policies must name Caring Transitions as an additional insured. Furthermore, no policy may have a deductible greater than $1,000. Franchisees cannot commence business operations until all required insurance coverages are in place. Caring Transitions retains the right to procure the necessary insurance on behalf of a franchisee who fails to do so, charging the franchisee for the cost plus interest. The franchisor can also 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, providing at least 30 days' notice.