What is the minimum coverage required for Employer's Liability Insurance for a Churchs Chicken franchise?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
ce, written on an "All Risks" policy for fire and related peril (including floods and earthquakes where applicable) with limits of insurance of not less than the full replacement value of the Franchised Restaurant, and its furniture, fixtures, equipment, inventory and other tangible property on Special Form with no co-insurance. If the Franchised Location is in an area prone to geological phenomena, including, but not limited to, wind, sinkholes, mine subsi
Source: Item 23 — RECEIPT (FDD pages 68–406)
What This Means (2025 FDD)
According to the 2025 Churchs Chicken Franchise Disclosure Document, franchisees are required to maintain Employer's Liability Insurance. The minimum coverage must be at least $1,000,000 per accident for bodily injury, $1,000,000 policy limit by disease, and $1,000,000 per employee for bodily injury by disease. However, if the law requires a higher amount, the franchisee must carry the greater coverage.
This insurance protects Churchs Chicken franchisees from financial losses associated with employee injuries or illnesses sustained during their employment. The policy must not exclude any employee, owner, sole proprietor, member, or officer. This ensures comprehensive coverage for all individuals working within the franchise.
Furthermore, the coverage must extend to all of the franchisee's employees who participate in any of Churchs Chicken's training programs. This requirement ensures that employees are protected even when they are off-site for training purposes. Franchisees should ensure their insurance policies meet these minimum requirements to avoid potential gaps in coverage and to comply with Churchs Chicken's franchise agreement.