Does Casiola require franchisees to obtain specific insurance coverage?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
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- Insurance 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.
Minimum Insurance Requirements
- (a) Commercial General Liability Insurance for bodily injury, death, or third party property damage, including the following coverage: (i) premises and operations; (ii) liquor liability; (iii) independent contractors; (iv) contractual liability; (v) products and completed operations; (vi) advertising / personal injury and; (vii) innkeeper's and safe deposit box liability in an amount not less than $1,000,000 per occurrence and in the annual aggregate.
- (b) Automobile Liability Insurance including all owned, non-owned, and hired vehicles used in conjunction with the services provided by Franchisee with a combined single limit of not less than $1,000,000 each occurrence.
- (c) Workers' Compensation Insurance that complies with the applicable laws governing the Franchise and all employees, subcontractors, and agents working for the Franchisee and Employers' Liability Insurance for not less than $500,000 per accident.
(d) All other insurance that we require in the Manuals or that is required by law.
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 obtain specific insurance coverage as detailed in the manuals, which may be modified over time. The insurance policies must be written by a carrier reasonably acceptable to Casiola, and all policies (excluding workers' compensation) must name Casiola and its related parties as additional insureds. Casiola requires at least 30 days' prior written notice from the insurance carrier in case of any material alteration or cancellation of the 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 starts.
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.
Casiola also mandates that franchisees obtain any other insurance required in the manuals or by law. Franchisees are advised to consult with their insurance carrier to determine the necessary level of coverage for their franchised business. This ensures that franchisees are adequately protected against potential liabilities and meet Casiola's requirements, which are designed to safeguard the brand and the interests of all parties involved.