What are the minimum coverage limits for Employment Practices Liability insurance that Carvel franchisees must maintain, including third-party coverage?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
. Statutory Workers' Compensation insurance, including employer's liability insurance, with limits not less than $500,000;
- D. Automobile Liability insuranc
Source: Item 23 — Receipts (FDD pages 100–353)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, franchisees are required to maintain Employment Practices Liability insurance, which includes third-party coverage. The minimum coverage limits for this insurance are $1,000,000 per employee and $1,000,000 per accident.
This insurance protects the Carvel franchisee against claims related to employment practices such as discrimination, harassment, or wrongful termination. The inclusion of third-party coverage extends this protection to claims made by individuals who are not directly employed by the franchisee but who may have a connection to the business, such as customers or vendors.
It is important for prospective Carvel franchisees to understand these insurance requirements and factor the cost of obtaining and maintaining this coverage into their overall business plan. Franchisees should also consult with an insurance professional to ensure they have adequate coverage to protect their business from potential liabilities.