What are the minimum limits for comprehensive general 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 must maintain comprehensive general liability insurance with specific minimum limits. The required coverage includes at least $1,000,000 per occurrence and $2,000,000 in the general aggregate. Additionally, the policy must include tenant's legal liability with limits of at least $300,000, personal and advertising injury coverage with limits of at least $1,000,000, and products and completed operations in the aggregate with limits of at least $2,000,000.
These insurance requirements are put in place to protect both the franchisee and Crisp & Green from potential financial losses due to accidents, injuries, or other liabilities that may arise during the operation of the franchise. The specific limits ensure that there is sufficient coverage to address potential claims and legal expenses. Franchisees must secure this insurance from an approved supplier, currently Christensen Group Insurance, although this requirement may change.
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. Franchisees must also name Crisp & Green and any other parties the company designates as additional insureds on their policies.