What is the minimum 'each occurrence' limit for commercial general liability coverage required by Craters & Freighters?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
We have standards and specifications for your insurance policies, and you must purchase certain insurance policies from our designated insurance supplier. You are required to have insurance covering the operations of your Franchised Business, in such amounts and on such terms, as prescribed by the Operations Manuals. As of the date of this Franchise Disclosure Document, this insurance will be a combination of, and not limited to:
- Commercial general liability coverage which includes bodily injury, property damage, personal injury, and broad form contractual liability, with the following limits:
- o General aggregate: $2,000,000 o Each occurrence: $1,000,000
- o Products-completed operations aggregate: $2,000,000
o Personal and advertising injury: $1,000,000
o Fire legal liability: $100,000
o Blanket contractual liability: $1,000,000
- Umbrella coverage with a minimum limit of $1,000,000 per occurrence, at least as broad as the required underlying coverage.
- Automobile liability with a minimum limit of $1,000,000 comprehensive per occurrence on all hired, owned, and non-owned vehicles.
- Workers compensation coverage which complies with state law and with the following limits:
o Each accident: $1,000,000
o Disease – each employee: $1,000,000 o Disease – policy limit: $1,000,000
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 18–20)
What This Means (2025 FDD)
According to Craters & Freighters' 2025 Franchise Disclosure Document, franchisees must maintain commercial general liability coverage with specific minimum limits. The 'each occurrence' limit, which covers damages from a single incident, must be at least $1,000,000.
In addition to the 'each occurrence' limit, Craters & Freighters requires a general aggregate limit of $2,000,000 and a products-completed operations aggregate of $2,000,000. Franchisees must also carry personal and advertising injury coverage of $1,000,000, fire legal liability of $100,000, and blanket contractual liability of $1,000,000. These coverages protect both the franchisee and Craters & Freighters from various potential liabilities.
Furthermore, Craters & Freighters mandates that franchisees obtain umbrella coverage with a minimum limit of $1,000,000 per occurrence, automobile liability with a minimum limit of $1,000,000 comprehensive per occurrence, and workers' compensation coverage that complies with state law, including specific limits for each accident and disease. While these are the minimum requirements, Craters & Freighters strongly recommends that franchisees consult with a licensed insurance agent or broker to identify and obtain additional insurance coverage, such as warehouse storage and cyber insurance, to adequately protect their business.