What is the minimum coverage amount required for workers' compensation insurance for employer's liability per accident for a Crave franchise?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
nts and employees; and it must be provided on an Additional Insured Grantor of Franchise Endorsement form CG2029 (or an endorsement form with comparable wording acceptable to us).
- 12.2.2 Insurance must be underwritten by insurers licensed and permitted to write coverage in the state in which the Franchised Business is located. These policies must include the coverage that we require, which currently includes: (a) "all risk" or "special" property insurance covering all real and personal property and equipment on a replacement costs basis, including business interruption and extra expense insurance on an actual loss sustained basis; (b) comprehensive general liability insurance, including products and completed operations in an amount of not less than the following combined single limits: Two Million Dollars ($2,000,000) per occurrence, Two Million Dollars ($2,000,000) personal and advertising injury, Two Million Dollars ($2,000,000) completed operations/products aggregate, Two Million Dollars ($2,000,000) aggregate per location; (c) employment practices liability coverage with a limit of One Hundred Thousand Dollars ($100,000) per occurrence and in the aggregate; (d) commercial automobile liability coverage, including coverage of owned, non-owned, rented or hired vehicles with coverage in amounts not less than One Million Dollars ($1,000,000) combined single limit; and (e) workers' compensation insurance for statutory limits and employer's liability insurance in amounts not less than One Million Dollars ($1,000,000) per accident, One Million Dollars ($1,000,000) each employee per disease and On
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 workers' compensation insurance with specific coverage limits. The minimum coverage for employer's liability insurance is $1,000,000 per accident. Additionally, the franchisee must have coverage of $1,000,000 for each employee per disease and a $1,000,000 policy limit per disease.
This insurance coverage is crucial for protecting both the franchisee and their employees in the event of workplace accidents or illnesses. It ensures that there are sufficient funds available to cover medical expenses, lost wages, and other related costs. Failing to maintain the required insurance coverage could expose the franchisee to significant financial liabilities and legal repercussions.
Crave also stipulates that the insurance policies must be underwritten by insurers licensed and permitted to write coverage in the state where the franchised business is located. This requirement ensures that the insurance provider is reputable and authorized to operate in the relevant jurisdiction. Furthermore, Crave Franchising, LLC must be named as an additional insured on a primary non-contributory basis on the general liability and auto liability policies.
Crave retains the right to modify the required insurance coverages and amounts, and franchisees must comply with these changes at their own expense. It is important for prospective franchisees to carefully review the insurance requirements outlined in the Franchise Agreement and to consult with an insurance professional to ensure they obtain the necessary coverage.