What is the aggregate limit required for the Commercial General Liability insurance for a Chocolate Bash franchise?

According to the 2024 Franchise Disclosure Document, Chocolate Bash franchisees must maintain Commercial General Liability insurance with specific coverage limits. The insurance policy must include product liability and broad form commercial liability coverage, written on an "occurrence" policy form. The minimum required coverage is $1,000,000 single limit per occurrence and $2,000,000 aggregate limit.

This insurance requirement protects both the franchisee and Chocolate Bash from potential financial liabilities arising from accidents, injuries, or damages that may occur at the business location or result from the products sold. The "occurrence" policy form means the policy will cover incidents that occur during the policy term, regardless of when a claim is filed.

In addition to the coverage amounts, Chocolate Bash requires that the insurance policies (excluding Workers Compensation) list Chocolate Bash and its affiliates as additional insured, include a waiver of subrogation in favor of Chocolate Bash and its affiliates, be primary and non-contributing with any insurance carried by Chocolate Bash or its affiliates, and stipulate that Chocolate Bash shall receive 30 days' prior written notice of cancellation. Franchisees must provide Certificates of Insurance evidencing the required coverage to Chocolate Bash prior to opening and upon annual renewal of the insurance coverage, as well as at any time upon request of Chocolate Bash.

Meeting these insurance requirements is a crucial aspect of operating a Chocolate Bash franchise, ensuring compliance with the Franchise Agreement and protecting against potential financial losses. Franchisees should consult with an insurance professional to secure appropriate coverage that meets these specifications.