What minimum general liability insurance coverage does Chatime require per occurrence?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
ier directly or to us if so
designated.
- (10) Insurance. We currently require that you maintain the following insurance coverages: A) general liability coverage with minimums of $1 million per occurrence, $2 million general and products/completed operations aggregate, $1 million personal/advertising injury, $50,000 rented premises damage, and $5,000 medical expenses; B) franchisee commercial auto insurance with a $1 million combined single limit; C) workers compensation insurance with coverage limits of $1 million for bodily injury by disease per accident, $1 million policy limit, and $1 million per employee, regardless of state laws and cannot exclude owner-operators; D) property/business interruption coverage business personal property, tenant improvements, equipment, business interruption, and franchisor royalties, for a minimum of 12 months' actual loss sustained; E) cyber liability insurance with minimum coverage limits of $250,000 per occurrence and $250,000 aggregate; F) employment practices liability insurance with minimum coverage limits of $500,000 per occurrence and $500,000 aggregate, which includes third party liability and wage & hour coverage of at least $25,000, with a maximum deductible that does not exceed $25,000; G) crime insurance with a minimum coverage of $100,000 for each claim. We recommend that you maintain build-out insurance coverage. You must also maintain workers' compensation insurance cove
Source: Item 7 — Estimated Initial Investment (FDD pages 17–22)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, franchisees must maintain general liability insurance coverage with a minimum of $1 million per occurrence. Additionally, the coverage must include $2 million general and products/completed operations aggregate, $1 million personal/advertising injury, $50,000 rented premises damage, and $5,000 medical expenses.
Beyond general liability, Chatime also mandates several other insurance coverages. These include commercial auto insurance with a $1 million combined single limit, workers' compensation insurance with specific coverage limits of $1 million for various injury types, property/business interruption coverage for a minimum of 12 months' actual loss sustained, cyber liability insurance with minimum coverage limits of $250,000 per occurrence and $250,000 aggregate, employment practices liability insurance with minimum coverage limits of $500,000 per occurrence and $500,000 aggregate, and crime insurance with a minimum coverage of $100,000 for each claim.
The initial investment table in Item 7 estimates insurance costs to range from $3,000 to $6,000. It is important for prospective franchisees to factor in these insurance requirements when assessing the overall financial commitment of opening a Chatime franchise. Franchisees should consult with insurance professionals to ensure they obtain adequate coverage that meets Chatime's requirements and protects their business from potential liabilities.