What is the minimum amount of Business Automobile Liability insurance Crab N Spice requires?
Crab_N_Spice Franchise · 2024 FDDAnswer from 2024 FDD Document
ure document as Exhibit D).
- B. Insurance. You must obtain insurance as described in the Franchise Agreement and in our Manual, which includes (i) "Special" causes of loss coverage forms, including fire and extended coverage, crime, vandalism, and malicious mischief, on all property of the Business, for full repair and replacement value (subject to a reasonable deductible); (ii) Business interruption insurance covering at least 12 months of income; (iii) Commercial General Liability insurance, including products liability coverage, and broad form commercial liability coverage, written on an "occurrence" policy form in an amount of not less than $1,000,000 single limit per occurrence and $2,000,000 aggregate limit, (iv) Business Automobile Liability insurance including owned, leased, non-owned and hired automobiles coverage in an amount of not less than $1,000,000, and (v) Workers Compensation coverage as required by state law. Your policies (other than Workers Compensation) must list us and our affiliates as an additional insured, must include a waiver of subrogation in favor of us and our affiliates, must be primary and non-contributing with any insurance carried by us or our affiliates, and must stipulate that we receive 30 days' prior wri
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 17–19)
What This Means (2024 FDD)
According to Crab N Spice's 2024 Franchise Disclosure Document, franchisees must maintain Business Automobile Liability insurance with a minimum coverage of $1,000,000. This insurance must cover owned, leased, non-owned, and hired automobiles.
This requirement ensures that Crab N Spice franchisees are adequately protected against potential liabilities arising from vehicle-related incidents during business operations. The $1,000,000 minimum coverage suggests that Crab N Spice places a high priority on mitigating financial risks associated with automobile accidents.
In addition to the Business Automobile Liability insurance, Crab N Spice requires franchisees to obtain other insurance coverages, including Commercial General Liability insurance with specified limits, Workers Compensation coverage as required by state law, and property insurance. Furthermore, Crab N Spice and its affiliates must be listed as additional insureds on the franchisee's policies (excluding Workers Compensation), and the policies must include a waiver of subrogation in favor of Crab N Spice and its affiliates. These stipulations ensure that Crab N Spice is protected from potential liabilities arising from the franchisee's operations and that the franchisee's insurance is the primary coverage in case of a claim.