What are the minimum limits for excess/umbrella liability coverage that Crisp & Green franchisees must maintain for their Crisp & Green franchise?
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 excess/umbrella liability coverage with a limit of $3,000,000 per occurrence and $3,000,000 annual aggregate. This coverage is in excess of general liability, auto liability, and employer's liability / worker's compensation coverage.
Maintaining this level of coverage is a significant financial responsibility for Crisp & Green franchisees. Excess liability insurance provides an extra layer of protection beyond the limits of the standard policies, safeguarding against potentially large claims or lawsuits that could arise from accidents, injuries, or other incidents on the franchise premises or involving franchise operations.
Crisp & Green requires franchisees to secure insurance from an approved supplier, currently Christensen Group Insurance. This requirement ensures that the insurance policies meet the specific needs and standards set by the franchisor. Franchisees must provide evidence of their insurance coverage before beginning operations, upon annual renewal, or within 10 days of the franchisor's demand for proof. This stringent oversight helps Crisp & Green manage risk across the franchise system and protect the brand's reputation.
Prospective franchisees should factor the cost of this insurance coverage into their initial investment and ongoing operating expenses. It is also important to understand the terms and conditions of the required insurance policies and to ensure that they adequately protect the franchisee's business interests. Franchisees should also confirm whether the approved supplier offers competitive rates and comprehensive coverage compared to other insurance providers.