What is the minimum aggregate coverage amount for Comprehensive General Liability Insurance that a Circle K Purchaser must maintain?
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, a purchaser must maintain Comprehensive General Liability Insurance with minimum limits of at least $1,000,000 per occurrence, and an aggregate coverage of no less than $2,000,000. This insurance covers 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 the agreement, bodily injury, and property damage.
This requirement ensures that Circle K purchasers have adequate financial protection against potential liabilities arising from their business operations. The $2,000,000 aggregate coverage means that the insurance policy will cover up to this amount for all claims made during the policy period. Franchisees need to factor in the cost of this insurance when evaluating the overall investment and operating expenses of a Circle K franchise.
It is important to note that these are minimum insurance requirements, and Circle K may require purchasers to carry additional types and amounts of insurance coverage, including modifications to any existing insurance required. If a purchaser fails to obtain insurance coverage meeting the minimum requirements, Circle K may, but is not obligated to, obtain insurance coverage on the purchaser's behalf, and the purchaser must reimburse Circle K for all costs and expenses incurred to obtain insurance coverage.