What are the coverage limits for employer's liability coverage under worker's compensation insurance for a Cicis restaurant?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
its of not less than $1,000,000.
- (5) Worker's compensation insurance to provide statutory coverage in the applicable state, and employers liability coverage with limits of $500,000/$500,000/$500,000 or, if permissible under applicable law, any legally appropriate alternative, provided that you (i) maintain an excess indemnity or "umbrella" policy covering employer's liability and a medical/disability policy covering medical expenses for on-the-job accidents, which policy or policies will be written by a responsible carrier meeting the requirements set forth above and which will contain such coverage amounts as you and we mutually agree upon and (ii) conduct
and maintain a risk management and safety program for your employees that you and
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 25–28)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, franchisees are required to maintain worker's compensation insurance to provide statutory coverage in the applicable state. Additionally, they must have employer's liability coverage with limits of $500,000/$500,000/$500,000.
However, the FDD provides an alternative option if permissible under applicable law. Franchisees can pursue a legally appropriate alternative to the standard employer's liability coverage limits, provided they meet specific conditions. These conditions include maintaining an excess indemnity or "umbrella" policy covering employer's liability and a medical/disability policy covering medical expenses for on-the-job accidents. The policy or policies must be written by a responsible carrier meeting the requirements set forth by Cicis and contain coverage amounts that are mutually agreed upon by both the franchisee and Cicis.
In addition to the insurance policies, franchisees choosing the alternative option must conduct and maintain a risk management and safety program for their employees. This program must be mutually agreed upon as appropriate by both the franchisee and Cicis. This indicates that Cicis places importance on risk management and safety within its franchise operations, potentially to mitigate risks associated with worker's compensation claims.