What is the minimum per occurrence limit for Comprehensive General Liability Insurance that a Circle K purchaser must obtain?
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)
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 obtain Comprehensive General Liability Insurance with minimum limits of at least $1,000,000 per occurrence. Additionally, the purchaser must maintain an aggregate coverage of no less than $2,000,000. This insurance coverage should extend to 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 motor vehicles), bodily injury, and property damage.
This requirement ensures that Circle K franchisees have sufficient insurance to cover potential liabilities arising from their business operations. The per occurrence limit of $1,000,000 means that for each separate incident, the insurance will cover up to that amount. The aggregate coverage of $2,000,000 represents the total amount the insurance policy will pay out during the policy term, regardless of the number of occurrences.
It is important for prospective Circle K franchisees to factor in the cost of this insurance when evaluating the financial feasibility of the franchise. Failure to maintain the required insurance coverage could result in Circle K obtaining insurance on the purchaser's behalf, with the purchaser responsible for reimbursing all costs and expenses incurred by Circle K. Franchisees should also be aware that these are minimum requirements, and they may need additional coverage to adequately meet their insurance needs.