What is the minimum Aggregate insurance coverage requirement per occurrence for a City Wide franchise?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
preferred vendor by a regional or national account ("Preferred Vendor Account").
Insurance Requirements
You must obtain and maintain, at your own expense, the insurance coverages that CITY WIDE periodically requires and satisfy other insurance-related obligations. Where permissible, all insurance policies must name City Wide Franchise Company, Inc. as an additional insured. The current required insurance types and minimum coverages as further described below and in the Operating Manual, include but are not limited to the following:
Insurance Types and Minimum Coverages:
- Comprehensive General Liability $1,000,000 per occurrence
- Aggregate $2,000,000 per occurrence
- Hired/Non-Owned Auto Coverage $1,000,000 per occurrence
- Cyber Insurance $1,000
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 24–28)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, franchisees must maintain specific insurance coverages. The minimum aggregate insurance coverage required is $2,000,000 per occurrence. Additionally, City Wide requires franchisees to obtain and maintain other insurance types, including Comprehensive General Liability, Hired/Non-Owned Auto Coverage, Cyber Insurance, and Crime/Employee Dishonesty coverage, each with its own minimum coverage amount.
It is important to note that these are the minimum insurance requirements set by City Wide. Franchisees may need to obtain additional coverage if required by specific National Account Contracts. If a City Wide franchisee provides service to a National Account, they must carry the types and coverages of insurance required by each National Account Contract. The franchisee is solely responsible for ensuring that any subcontractors they use to perform the services to a National Account also carries the required types and coverages of insurance.
Prospective franchisees should carefully review the insurance requirements outlined in the Franchise Disclosure Document and Operating Manual to understand the full scope of their obligations. They should also consult with an insurance professional to determine the appropriate level of coverage for their specific business needs and circumstances. Understanding and meeting these insurance requirements is crucial for protecting the franchisee's business and assets, as well as ensuring compliance with City Wide's standards and any National Account contracts.