Is Caring Transitions required to be named as an additional insured on the franchisee's insurance policies?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
-
- You must obtain and maintain the types and amounts of insurance coverage described in Item 8 under the heading "Insurance." We must be named as an additional insured on these policies. We estimate that the average total annual cost for the required insurance coverage will be between $2,000 and $4,000. The premium is typically due before the effective date of the coverage unless your insurance company offers monthly or quarterly payment terms. Insurance costs will vary depending upon the location and size of your office, the number of employees and other factors, and may change from time to time due to changes in insurance rates. You must also maintain workers' compensation coverage and any other insurance that may be required by law in your terr
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 16–19)
What This Means (2025 FDD)
According to Caring Transitions's 2025 Franchise Disclosure Document, franchisees are required to secure and maintain specific types and amounts of insurance coverage, and Caring Transitions must be named as an additional insured on these policies. The FDD estimates that the average total annual cost for the required insurance coverage will range from $2,000 to $4,000. The premium is typically due before the effective date of the coverage, although some insurance companies may offer monthly or quarterly payment plans.
Insurance costs can fluctuate based on several factors, including the location and size of the franchisee's office, the number of employees, and changes in insurance rates. In addition to the specified coverage, franchisees must also maintain workers' compensation coverage and any other insurance mandated by law in their territory.
This requirement ensures that Caring Transitions is protected from potential liabilities arising from the franchisee's operations. Franchisees should factor these insurance costs into their initial investment and ongoing operational expenses. It is important to obtain accurate insurance quotes and understand the specific coverage requirements to ensure compliance and adequate protection for the business.