What are the minimum coverage limits for Employment Practices Liability insurance, including third-party coverage, that a Carvel franchisee must maintain?

According to Carvel's 2025 Franchise Disclosure Document, franchisees must maintain Employment Practices Liability insurance, including third-party coverage. The minimum coverage required is $1,000,000 per employee and $1,000,000 per accident. This insurance protects the franchisee against claims related to employment practices such as discrimination, wrongful termination, and harassment.

This level of coverage is fairly standard in the franchise industry, as employment-related claims can be costly and can arise even in well-managed businesses. The inclusion of third-party coverage is also important, as it extends protection to claims made by individuals who are not direct employees, such as contractors or customers, who may allege discrimination or harassment.

Carvel franchisees should carefully review their insurance policies to ensure they meet these minimum requirements and understand the scope of coverage. It is also important to consider whether these minimums are sufficient for their specific business circumstances, as higher coverage limits may be prudent depending on the size of the workforce and other risk factors. Franchisees should consult with their insurance advisors to determine the appropriate level of coverage for their Carvel franchise.