What minimum amount of general liability insurance coverage per occurrence is required for a Checkers franchise?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
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Insurance
During the term of the Franchise Agreement, you must maintain the following categories of insurance coverage in force at your sole expense, all containing at least the following minimum amounts of liability coverage: (a) general liability ($1,000,000 per occurrence and $2,000,000 aggregate); (b) automobile ($1,000,000 combined single limit) for owned and hired, non-owned liability; (c) umbrella liability ($5,000,000 per occurrence and aggregate) with employer's liability, general liability, and automobile liability scheduled as underlying policies; (d) property covering the Franchised Restaurant and personal property in an amount 100% of the full replacement cost of the Franchised Restaurant and personal property, and business income coverage covering 12 months of actual loss sustained; (e) workers' compensation (as required by statute); (f) employer's liability ($1,000,000/$1,000,000/$1,000,000); (g) employment practices liability ($1,000,000 per occurrence and aggregate limit); (h) cyber insurance ($1,000,000 per occurrence and agg
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 39–44)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, franchisees must maintain general liability insurance coverage of at least $1,000,000 per occurrence and $2,000,000 in aggregate. This insurance coverage is one of several categories of insurance that Checkers requires franchisees to maintain during the term of their Franchise Agreement.
In addition to general liability, Checkers franchisees must also carry other types of insurance, including automobile liability ($1,000,000 combined single limit), umbrella liability ($5,000,000 per occurrence and aggregate), property insurance (100% of full replacement cost), workers' compensation (as required by statute), employer's liability ($1,000,000/$1,000,000/$1,000,000), employment practices liability ($1,000,000 per occurrence and aggregate limit), and cyber insurance ($1,000,000 per occurrence and aggregate limit). Checkers also reserves the right to require other insurance policies as they may determine from time to time.
Checkers specifies that all insurance policies must be issued by carriers they approve with an A.M. Best Rating of not less than A VII. The policies must also name Checkers and its affiliates as additional insured, provide for 30 days' prior written notice of any material modification, cancellation, or expiration, and include a waiver of subrogation in favor of Checkers and its affiliates. The minimum coverage amounts prescribed by Checkers do not limit the franchisee's liability. Checkers may also periodically increase the required coverage amounts or require different or additional insurance coverage to reflect changes in circumstances such as inflation or new risks.