What specific coverages are included in the Commercial General Liability Insurance required for a Casiola franchise?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
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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 Insura
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 maintain Commercial General Liability Insurance with specific coverages. This insurance must cover bodily injury, death, or third-party property damage, and includes premises and operations coverage. It also requires liquor liability coverage, which is particularly relevant if the Casiola location serves alcohol.
Further, the Commercial General Liability Insurance must include coverage for independent contractors and contractual liability, protecting Casiola franchisees from liabilities arising from their business relationships. The policy must also cover products and completed operations, as well as advertising/personal injury. Finally, the policy must include innkeeper's and safe deposit box liability. The minimum coverage amount for the Commercial General Liability Insurance is $1,000,000 per occurrence and in the annual aggregate.
In addition to Commercial General Liability Insurance, Casiola franchisees are required to maintain other types of insurance, including Automobile Liability Insurance with a combined single limit of not less than $1,000,000 per occurrence, and Workers' Compensation Insurance that complies with applicable laws, including Employers' Liability Insurance for not less than $500,000 per accident. Franchisees must ensure that all insurance policies are written by a carrier reasonably acceptable to Casiola and that Casiola is named as an additional insured (excluding workers' compensation). The insurance carrier must provide Casiola with at least 30 days' prior written notice of any material alteration or cancellation of the policy. Franchisees must furnish a certificate of insurance to Casiola at the earlier of 90 days after the Effective Date of the Franchise Agreement or prior to the commencement of the initial training program.