What is the minimum coverage amount required for Jeweler's Insurance for a Crown Gold Exchange franchise?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 FDD Document
res, including any national or regional brand conventions. Franchisee shall not permit the Principal Executive to fail to attend more than three consecutive required meetings.
7.15 Insurance.
- (a) Franchisee shall obtain and maintain insurance policies in the types and amounts as specified by Crown Gold Franchising in the Manual. If not specified in the Manual, Franchisee shall maintain at least the following insurance coverage:
- (i) "Special" causes of loss coverage forms, including fire and extended coverage, crime, vandalism, and malicious mischief, on all property of the Business, for full repair and replacement value (subject to a reasonable deductible);
- (ii) Business interruption insurance covering at least 12 months of income;
- (iii) Commercial General Liability insurance, including products liability coverage, and broad form commercial liability coverage, written on an "occurrence" policy form in an amount of not less than $1,000,000 single limit per occurrence and $2,000,000 aggregate limit;
- (iv) Jeweler's Insurance coverage in an amount of not less than $1,000,000; and
- (v) Workers Compensation coverage as required by state law.
- (b) Franchisee's policies (other than Workers Compensation) must (1) list Crown Gold Franchising and its affiliates as an additional insured, (2) include a waiver of subrogation in favor of Crown Gold Franchising and its affiliates, (3) be primary and non-contributing with any insurance carried by Crown Gold Franchising or its affiliates, and (4) stipulate that Crown Gold Franchising shall receive 30 days' prior written notice of cancellation.
- (c) Franchisee shall provide Certificates of
Source: Item 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
According to the 2024 Franchise Disclosure Document, Crown Gold Exchange requires franchisees to maintain Jeweler's Insurance coverage with a minimum coverage amount of $1,000,000. This insurance is in addition to other required coverage types, such as general liability, business interruption, and worker's compensation.
This requirement ensures that the Crown Gold Exchange franchisee has adequate financial protection against potential losses specific to the jewelry business, such as theft, damage, or loss of valuable items. The franchisee is responsible for securing and maintaining this insurance coverage throughout the term of the franchise agreement.
Furthermore, Crown Gold Exchange must be listed as an additional insured on the franchisee's policies (excluding Workers Compensation), and the policies must include a waiver of subrogation in favor of Crown Gold Franchising and its affiliates. The insurance policies must also stipulate that Crown Gold Franchising receives 30 days' prior written notice of cancellation. The franchisee must provide Certificates of Insurance to Crown Gold Franchising before opening and upon annual renewal, as well as upon request.