What are the minimum coverage amounts for Employer's Liability Insurance for a Chicken Guy franchise?

According to Chicken Guy's 2025 Franchise Disclosure Document, franchisees are required to maintain Employer's Liability Insurance with specific minimum coverage amounts. This insurance must cover $500,000 per person, $500,000 in the aggregate, and $500,000 for occupational disease. This coverage is part of a broader set of insurance requirements Chicken Guy mandates to protect the business and brand.

The purpose of Employer's Liability Insurance is to protect the franchisee from potential financial losses resulting from employee lawsuits or claims related to workplace injuries or illnesses that are not covered by workers' compensation. The per-person limit applies to individual claims, while the aggregate limit caps the total amount the policy will pay out for all claims during the policy period. The occupational disease coverage specifically addresses illnesses contracted by employees due to their work environment.

Chicken Guy retains the right to increase these minimum coverage requirements to reflect changes in liability standards, inflation, or other relevant circumstances. Franchisees will receive written notice of any such modifications and are expected to promptly adjust their insurance coverage accordingly. Furthermore, all insurance policies must be written by companies satisfactory to Chicken Guy and adhere to the standards and specifications outlined in the franchise's manual or provided in writing.

It is important for prospective Chicken Guy franchisees to understand these insurance requirements and factor the costs of obtaining and maintaining the necessary coverage into their overall business plan. Failure to maintain the required insurance could result in Chicken Guy procuring the insurance on the franchisee's behalf and charging the cost to the franchisee, as detailed in the FDD.