What are the coverage limits for employer's liability coverage within the worker's compensation insurance that a Cicis franchisee must maintain?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
s 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 22 — CONTRACTS (FDD pages 64–65)
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, Cicis allows for an alternative to these specific employer's liability limits if permissible under applicable law. In this case, the franchisee must maintain an excess indemnity or "umbrella" policy covering employer's liability, along with a medical/disability policy covering medical expenses for on-the-job accidents. The specific coverage amounts for this alternative policy will be mutually agreed upon by the franchisee and Cicis and written by a responsible carrier meeting the franchisor's requirements.
In addition to the insurance requirements, Cicis also mandates that franchisees conduct and maintain a risk management and safety program for their employees. The specifics of this program must be mutually agreed upon by both the franchisee and Cicis. This suggests that Cicis is willing to work with franchisees to ensure they have adequate coverage and safety measures in place, while also maintaining some control over the process.