What minimum amount of comprehensive General Liability coverage per occurrence is required for Chesters restaurants?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
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Insurance. You must have the types and amounts of insurance coverage appropriate in your market for the Restaurant's business activities, which must include at least One Million Dollars ($1,000,000) per occurrence and Two Million Dollars ($2,000,000) in the annual aggregate of comprehensive General Liability coverage, Workers' Compensation coverage providing benefits, as required by applicable law, and Employers' Liability coverage with a limit of not less than One Million Dollars ($1,000,000) each accident, including occupational disease coverage. The policies must name Chester's International, LLC as an additional insured and provide for a waiver of subrogation in favor of CHESTER'S. Your insurance will be primary and any insurance carried by CHESTER'S will be excess and non-contribut
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 19–22)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, franchisees must maintain specific insurance coverage amounts. Chesters requires a minimum of $1,000,000 per occurrence for comprehensive General Liability coverage. Additionally, the franchisee must have $2,000,000 in the annual aggregate of comprehensive General Liability coverage.
Beyond the General Liability coverage, Chesters also mandates Workers' Compensation coverage that provides benefits as required by applicable law. Furthermore, Employers' Liability coverage is required with a limit of not less than $1,000,000 for each accident, including occupational disease coverage.
Chesters requires that all insurance policies name Chester's International, LLC as an additional insured and include a waiver of subrogation in favor of CHESTER'S. The franchisee's insurance coverage must be primary, meaning that it will be the first source of payment for any claims, and any insurance carried by CHESTER'S will be excess and non-contributory.