What are the minimum limits for automobile liability insurance that Crisp & Green franchisees must maintain?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
ur stated minimums.
Our current minimum insurance requirements are as follows: (i) all risks property insurance coverage in full replacement value of any leasehold improvements, furniture, fixtures and equipment, and including business income and extra expense; (ii) comprehensive general liability insurance with limits of at least $1,000,000 per occurrence and $2,000,000 in the general aggregate, including tenant's legal liability with limits of at least $300,000, personal and advertising injury with limits of at least $1,000,000, and products and completed operations in the aggregate with limits of at least $2,000,000; (iii) automobile liability insurance, including owned (if applicable), non-owned and hired vehicle coverage with a combined single limit of at least $1,000,000; (iv) worker's compensation and employer's liability insurance with employer's liability limits of $500,000 per accident, $500,000 in the aggregate, and $500,000 for disease, as well as any other insurance required by law; (v) excess/umbrella liability coverage with a limit of $3,000,000 per occurrence, $3,000,000 annual aggregate, that sits in excess of general liability, auto liability, and employer's liability / worker's co
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 26–31)
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, franchisees are required to maintain automobile liability insurance with specific minimum coverage limits. This insurance must include coverage for owned (if applicable), non-owned, and hired vehicles. The minimum combined single limit for this coverage is $1,000,000.
This requirement ensures that Crisp & Green franchisees have adequate financial protection in the event of an accident involving a vehicle used in the business. The $1,000,000 minimum limit is designed to cover potential liabilities arising from bodily injury or property damage caused by the franchisee's vehicles. Franchisees must secure this insurance from an approved supplier, currently Christensen Group Insurance, and provide proof of coverage to Crisp & Green before commencing operations, upon annual renewal, or within 10 days of a request from the franchisor.
In addition to automobile liability insurance, Crisp & Green franchisees must also maintain other types of insurance, including property insurance, comprehensive general liability insurance, worker's compensation, and excess/umbrella liability coverage. These insurance requirements are in place to protect both the franchisee and the franchisor from various risks associated with operating a Crisp & Green restaurant. The franchisor also needs to be named as an additional insured on all insurance policies.
It is important for prospective Crisp & Green franchisees to factor in the cost of these insurance policies when evaluating the overall investment required to start and operate a franchise. Failing to maintain the required insurance coverage could result in a breach of the franchise agreement and potential termination of the franchise.