What are the minimum workers compensation coverage limits for 'each accident' required by Craters & Freighters?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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's 2025 Franchise Disclosure Document, franchisees must maintain workers compensation coverage that complies with state law and meets specific minimum limits. For each accident, the minimum coverage limit is $1,000,000. Additionally, the policy must cover disease, with a limit of $1,000,000 for each employee and a $1,000,000 policy limit.
These insurance requirements are in place to protect both the franchisee and Craters & Freighters from potential financial liabilities resulting from workplace accidents or illnesses. Ensuring adequate workers' compensation coverage is crucial for covering medical expenses, lost wages, and potential legal costs associated with employee injuries or illnesses sustained during the course of their employment. Franchisees should consult with a licensed insurance agent or broker to ensure they obtain adequate coverage that meets both the franchisor's requirements and state law.
It is important to note that the insurance coverage limits specified in the FDD are minimum requirements. Craters & Freighters strongly recommends that franchisees work with an insurance professional to identify and obtain additional insurance coverage as needed. This may include coverage for warehouse storage and cyber insurance, depending on the specific risks associated with the franchisee's business operations. Franchisees should carefully assess their individual needs and consult with experts to determine the appropriate level of coverage for their Craters & Freighters franchise.