What must the Worker's Compensation Insurance comply with for a Caring Transitions franchise?

According to Caring Transitions's 2025 Franchise Disclosure Document, franchisees must secure Worker's Compensation Insurance that adheres to the statutory requirements of the state where their franchised business operates. Additionally, they must maintain Employers' Liability Insurance with a minimum limit of $100,000, or if greater, the statutory minimum limit if required by state law.

This requirement ensures that Caring Transitions franchisees are adequately protected against potential liabilities related to employee injuries or illnesses sustained during work. By complying with state-specific statutory requirements, franchisees meet the legal obligations for worker's compensation coverage in their area. The additional Employers' Liability Insurance provides further financial protection beyond the basic worker's compensation coverage, with a minimum limit of $100,000 or the state-mandated minimum, whichever is higher.

It is important to note that Caring Transitions requires all insurance policies to name them as an additional insured, and no policy may have a deductible greater than $1,000. Franchisees must obtain all required insurance coverages before opening their franchise for business. Failure to maintain the required insurance coverage allows Caring Transitions the right to obtain it on the franchisee's behalf and charge them for the cost, plus interest. Franchisees must also maintain any other insurance that may be required by their landlord or by law in their territory.

Caring Transitions 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.