What is the minimum Commercial General Liability insurance limit per occurrence required for each Crave Leased Premises?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
ANCE**
INSURANCE:
Tenant shall procure and maintain the "primary" insurance policies described below in accordance with the below conditions:
- (1) Worker's Compensation insurance with statutory limits, or if no statutory limits exist, with minimum limits of $500,000 per occurrence, and Employer's Liability coverage with minimum limits of $1,000,000, for each employee for bodily injury by accident and for each employee for bodily injury by disease. Tenant shall cause Insurer to issue an endorsement providing stopgap insurance in monopolistic states in which a Leased Premises.
- (2) Commercial General Liability insurance with a $3,000,000 minimum limit per occurrence for each Leased Premises leased under the Lease or with per location aggregate limits for each Leased Premises leased under the Lease.
- i. The Commercial General Liability policy required under this Paragraph 2 should contain neither exclusion for contractual liability assumed by Tenant in a lease nor any Absolute Pollution exclusion, unless these coverages are provided by a separate policy with minimum limits equal to the Commercial General Liability policy limits required by this Paragraph 2.
- ii. Any policy obtained to satisfy the obligations of this Paragraph 2 must list as Additional Insureds the parties described below in Paragraph 4.
- iii. Tenant shall submit to Landlord, no later than thirty (30) days after the actual Rent Commencement Date, Certificates of Insurance and endorsements evidencing Tenant's compliance with this Paragraph 2.
- (3) Tenant may satisfy the minimum limits required in Paragraphs 1 and 2, above, by procuring and maintaining Umbrella/Excess Liability insurance on an umbrella basis, in excess over, and no less broad than the primary liability coverage; with the same inception
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, franchisees are required to maintain Commercial General Liability insurance with a $3,000,000 minimum limit per occurrence for each leased premises. Alternatively, Crave allows for per location aggregate limits for each leased premises.
The Commercial General Liability policy should not exclude contractual liability assumed by the franchisee in a lease, nor should it contain any Absolute Pollution exclusion. If these coverages are excluded, the franchisee must obtain separate policies with minimum limits equal to the Commercial General Liability policy limits.
Crave also stipulates that the insurance policy must list specific parties as Additional Insureds, as detailed in Paragraph 4 of the insurance requirements. Franchisees must provide Certificates of Insurance and endorsements to the landlord no later than 30 days after the rent commencement date to prove compliance. Franchisees can also meet the minimum limits by securing Umbrella/Excess Liability insurance, provided it meets specific conditions, including having the same inception and expiration dates as the primary liability coverage and including an endorsement providing per location per occurrence or aggregate limits for each leased premises.