What are the requirements for Worker's Compensation Insurance for a Caring Transitions franchisee?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
$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 obtain and maintain Worker's Compensation Insurance that complies with the statutory requirements of the state in which their franchised business is located. Additionally, they must carry Employers' Liability Insurance with a minimum limit of $100,000, or if greater, the statutory minimum limit if required by state law.
Caring Transitions requires that all insurance policies name them as an additional insured, and no policy may have a deductible greater than $1,000. Franchisees cannot open their franchise for business until they have obtained all the required insurance coverages. If a franchisee fails to obtain and maintain the required insurance coverage, Caring Transitions has the right to obtain it on their behalf and charge the franchisee for the cost, plus interest.
Caring Transitions franchisees may purchase their insurance from any approved supplier, which are listed in the operations manual. The franchisor retains 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, providing at least 30 days' notice.
In addition to Worker's Compensation and Employers' Liability Insurance, Caring Transitions franchisees must also maintain other insurance coverages, including All-Risk Insurance, Commercial General Liability Insurance, Professional Liability Insurance, Automobile Liability Insurance, Employee Dishonesty & Client Theft Insurance, Bailee Insurance, and an Umbrella Policy. Franchisees must also maintain any other insurance that may be required by their landlord or by law in their territory.