What is the minimum annual aggregate amount required for comprehensive General Liability coverage for a Chesters restaurant?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
fy.
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. Chesters requires a minimum of $2,000,000 in the annual aggregate for comprehensive General Liability coverage. Additionally, the franchisee must secure $1,000,000 per occurrence for the same General Liability coverage.
Beyond general liability, Chesters also mandates Workers' Compensation coverage, providing benefits as required by law. Employers' Liability coverage must also be maintained with a limit of not less than $1,000,000 for each accident, including occupational disease coverage.
All insurance policies must 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 will be considered primary, meaning that any insurance held by CHESTER'S will be excess and non-contributory. This ensures that the franchisee's insurance bears the initial responsibility for covering claims.