What is the required general aggregate limit for the commercial general liability coverage that Craters & Freighters franchisees must maintain?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
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
The policies and amounts provided above are our minimum insurance requirements. We strongly recommend that you work with a licensed insurance agent or broker to identify and obtain additional insurance coverage for your Franchised Business including, but not limited to, warehouse storage and cyber insurance coverage.
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 are required to maintain commercial general liability coverage with a general aggregate limit of $2,000,000. This coverage must include bodily injury, property damage, personal injury, and broad form contractual liability. Additionally, the policy must have an each occurrence limit of $1,000,000 and a products-completed operations aggregate of $2,000,000.
In addition to the general aggregate limit, Craters & Freighters franchisees must also maintain personal and advertising injury coverage of $1,000,000, fire legal liability of $100,000, and blanket contractual liability of $1,000,000. Furthermore, franchisees are required to have 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 on all hired, owned, and non-owned vehicles, and workers compensation coverage with limits of $1,000,000 for each accident, $1,000,000 for disease per employee, and $1,000,000 for disease policy limit.
Craters & Freighters emphasizes that these insurance policies and amounts are minimum requirements. The document strongly recommends that franchisees consult with a licensed insurance agent or broker to identify and obtain additional insurance coverage tailored to their specific business needs. This may include coverage for warehouse storage and cyber insurance, which are not explicitly mandated but are highly recommended to mitigate potential risks associated with operating a Craters & Freighters franchise.