What is the minimum business interruption insurance coverage period required by Crab N Spice?
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 interruption insurance covering at least 12 months of income. This requirement is part of the broader insurance obligations outlined in the Franchise Agreement and the brand's Manual.
This insurance coverage is designed to protect the franchisee's income stream in the event that the business is temporarily unable to operate due to unforeseen circumstances such as fire, natural disasters, or other covered events. By requiring a minimum of 12 months of coverage, Crab N Spice aims to ensure that franchisees have sufficient financial resources to cover ongoing expenses and lost profits while the business is being restored.
In addition to business interruption insurance, Crab N Spice franchisees are also required to obtain other types of insurance, including property insurance, commercial general liability insurance, business automobile liability insurance, and workers' compensation coverage. These insurance policies must meet specific requirements, such as listing Crab N Spice and its affiliates as additional insureds and including a waiver of subrogation in favor of the brand. Franchisees must also ensure that Crab N Spice receives 30 days' prior written notice of cancellation for these policies.