Must Casiola franchisees consult with a carrier representative to determine the necessary level of insurance coverage?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
You must obtain the insurance coverage that we require from time to time as presently disclosed in the Manuals and as we may modify. All insurance policies required under your Franchise Agreement and as set forth in the Franchise Agreement must be written by a responsible carrier, reasonably acceptable to us, and all insurance, excluding workers' compensation, must name us, our officers, directors, shareholders, partners, agents, representatives and independent contractors as additional insureds. The insurance policies must include a provision that the insurance carrier must provide us with no less than 30 days' prior written notice in the event of a material alteration to, or cancellation of, any insurance policy. A certificate of insurance must be furnished by you to use at the earlier of 90 days after the Effective Date of the Franchise Agreement or prior to the commencement of our initial training program. Insurance coverage must be at least as comprehensive as the minimum requirements set forth below and in the Franchise Agreement (Franchise Agreement, Article 8). You must consult your carrier representative to determine the level of coverage necessary for the Franchised Business.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 20–24)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, franchisees must consult with a carrier representative to determine the necessary level of insurance coverage for their Franchised Business. Casiola requires franchisees to obtain insurance coverage as specified in the manuals, which may be modified from time to time.
The insurance policies must be written by a responsible carrier acceptable to Casiola, and all policies (excluding workers' compensation) must name Casiola and its related parties as additional insureds. The insurance carrier must provide Casiola with at least 30 days' prior written notice of any material alteration or cancellation of the insurance policy. Franchisees must furnish a certificate of insurance to Casiola within 90 days after the Franchise Agreement's effective date or before the initial training program begins, whichever is earlier.
The minimum insurance requirements include Commercial General Liability Insurance of at least $1,000,000 per occurrence and in the annual aggregate, covering various aspects such as premises and operations, liquor liability, and innkeeper's liability. Franchisees also need Automobile Liability Insurance with a combined single limit of not less than $1,000,000 per occurrence, covering all owned, non-owned, and hired vehicles. Additionally, Workers' Compensation Insurance must comply with applicable laws, with Employers' Liability Insurance for not less than $500,000 per accident. Franchisees must also obtain any other insurance required in the manuals or by law.