What minimum limit of commercial general liability insurance is required per occurrence for a Cream shop, including bodily injury and property damage?

According to Cream's 2025 Franchise Disclosure Document, franchisees are required to maintain commercial general liability insurance with a minimum limit of $1,000,000 per occurrence. This coverage includes protection for bodily injury and property damage. Additionally, the franchisee must maintain $2,000,000 in the aggregate, as well as $2,000,000 for products liability, personal and advertising liability, and products and completed operations coverage.

This insurance requirement is a standard practice in franchising, designed to protect both the franchisee and Cream from potential financial losses due to lawsuits or claims. The per occurrence limit means that for each separate incident, the insurance company will cover up to $1,000,000 in damages. The aggregate limit of $2,000,000 represents the total amount the insurance company will pay out during the policy term, regardless of the number of occurrences.

Cream franchisees should factor the cost of this insurance into their initial and ongoing operating expenses. It is important to shop around for the best rates and coverage options to ensure compliance with Cream's requirements while managing costs effectively. Franchisees should also understand the specific terms and conditions of their insurance policies, including any exclusions or limitations.

Meeting these insurance requirements is crucial for Cream franchisees to protect their investment and operate within the bounds of the franchise agreement. Failure to maintain the required insurance coverage could result in penalties or even termination of the franchise agreement.