What is the minimum amount of insurance coverage required per occurrence for a Craters & Freighters franchise?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
- 13.1 Required Policies. Franchisee must procure and keep in force insurance policies, in such amounts and on such terms, as prescribed by Franchisor in the Operations Manuals, by an insurance company acceptable to Franchisor at all times during this Agreement. Franchisee must obtain such policies within thirty (30) days after signing this Agreement or prior to opening the Franchised Business to the public, whichever occurs first. Insurance coverage must include general liability, combined single limit, bodily injury and property damage insurance for premises operations, products liability, cargo, and packers legal liability insurance and all other occurrences against claims of any person, employee, customer, agent or otherwise in an amount per occurrence of not less than such amount set forth in the Operations Manuals. Franchisee acknowledges that Franchisor reserves the right to update such required insurance policies and amounts from time to time in Franchisor's sole discretion. Franchisee must also procure and pay for all other insurance required by state or federal law, including, without limitation, workers' compensation and unemployment insurance.
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, franchisees must maintain insurance policies throughout the term of the agreement. These policies, obtained from a company acceptable to Craters & Freighters, must be secured within 30 days of signing the agreement or before opening to the public, whichever comes first.
The required insurance coverage includes general liability, combined single limit, bodily injury and property damage insurance for premises operations, products liability, cargo, and packers legal liability insurance and all other occurrences against claims of any person, employee, customer, agent or otherwise. The minimum amount of coverage per occurrence must be no less than the amount set forth in the Operations Manuals.
Craters & Freighters retains the right to update the required insurance policies and amounts at its discretion. Franchisees are also responsible for procuring and paying for all other insurance required by state or federal law, including workers' compensation and unemployment insurance. It is important for prospective franchisees to review the Operations Manuals carefully to understand the specific insurance coverage amounts required at the time of signing the Franchise Agreement.