What is the purpose of the Employee Dishonesty & Client Theft Insurance for a Caring Transitions franchise?
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's 2025 Franchise Disclosure Document, franchisees are required to obtain and maintain Employee Dishonesty & Client Theft Insurance with a minimum limit of $25,000. This insurance coverage is designed to protect the franchisee and their clients against potential financial losses resulting from dishonest acts by employees, such as theft.
This requirement ensures that Caring Transitions franchisees have a financial safety net in place to cover losses stemming from employee dishonesty or client theft. This type of insurance is crucial in the moving and estate clearing industry, where employees often handle valuable personal property and sensitive client information. By mandating this insurance, Caring Transitions aims to mitigate the financial impact of such incidents, protecting both the franchisee's business and the clients they serve.
The franchisor also requires several other types of insurance, including All-Risk Insurance, Commercial General Liability Insurance, Professional Liability Insurance, Automobile Liability Insurance, Bailee Insurance, Worker's Compensation Insurance, and an Umbrella Policy. All insurance policies must name Caring Transitions as an additional insured, and no policy may have a deductible greater than $1,000. The franchisor 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.