Is a Circle K franchisee required to carry general commercial liability insurance?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
otor fuel or motor fuel products purchased from Seller hereunder. Seller reserves the right to market or sell, and authorize others to market or sell, motor fuel or motor fuel
products in any manner Seller chooses, including through its own retail outlets or through designated wholesalers or other retailers.
- Confidential Information. The confidentiality obligations of the Franchise Agreement apply to any nonpublic information received by or made available to Purchaser hereunder.
29. Purchaser's Insurance Requirements.
- (a) Purchaser shall, at its sole expense, obtain insurance from a reputable insurance carrier authorized to do business in the state in which the Premises is located providing full and continuous coverage for the full Term and all renewal periods thereof equivalent to the: (i) Comprehensive General Liability Insurance covering the Premises, all operations at the Premises, products completed operations liability, products liability, contractual liability, fire, explosion and collapse liability, as well as coverage on all contractor's equipment (other than motor vehicles licensed for highway use) owned, hired, or used in connection with this Agreement, bodily injury, and property damage, with minimum limits of at least $1,000,000 per occurrence, and an aggregate coverage of no less than $2,000,000; (ii) if Purchaser operates, or permits the operation of, a service bay and/or car wash on the Premises, Legal Liability Insurance covering fire, theft or collision, with a minimum limit of $500,000 per occurrence and coverage in the general aggregate amount of no less than $1,000,000; (iii) Automobile Liability Insurance, covering all owned, hired or otherwise operated non-owned automobiles, for death of or injury to any one person and liabilities for loss of or damage to property resulting from any one accident with a combined single limit of not less than $1,000,000 per occurrence, including MCS 90 endorsement or other acceptable evidence of financial responsibility as required by the Motor Carrier Act of 1980 and the Pollution Liability Broadened Coverage endorsement; (iv) Workers Compensation Insurance as required by law; (v) Employer's Liability Insurance against common law liability, in the absence of statutory liability, for employee bodily injury arising out of the
Source: Item 23 — RECEIPTS (FDD pages 100–359)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, franchisees are required to obtain and maintain several types of insurance coverage. This includes Comprehensive General Liability Insurance, which must cover the premises, all operations at the premises, products completed operations liability, products liability, contractual liability, fire, explosion and collapse liability, as well as coverage on all contractor's equipment (excluding licensed highway motor vehicles). This insurance must cover bodily injury and property damage. The minimum limit is $1,000,000 per occurrence, with an aggregate coverage of no less than $2,000,000.
In addition to general liability, Circle K franchisees must also secure other specific insurance policies depending on their store's operations. If the franchisee operates a service bay or car wash, they need Legal Liability Insurance covering fire, theft, or collision, with a minimum limit of $500,000 per occurrence and a general aggregate coverage of at least $1,000,000. Automobile Liability Insurance is required for all owned, hired, or non-owned vehicles, with a combined single limit of not less than $1,000,000 per occurrence, including specific endorsements related to the Motor Carrier Act of 1980 and Pollution Liability.
Furthermore, franchisees must maintain Workers Compensation Insurance as mandated by law and Employer's Liability Insurance with a coverage limit of the greater of the amount required by law or $500,000 per occurrence. Environmental pollution/impairment insurance coverage is also mandatory, with a minimum of $1,000,000, to cover environmental liabilities related to the storage, handling, dispensing, and sale of motor fuel products and lubricants. These insurance policies must be obtained from reputable carriers authorized to do business in the state where the Circle K premises are located, ensuring continuous coverage throughout the franchise term and any renewals.