How much business interruption insurance is required 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 Crown Gold Exchange's 2024 Franchise Disclosure Document, franchisees must secure business interruption insurance that covers at least 12 months of income. This insurance is designed to protect the franchisee's revenue stream in the event of unforeseen circumstances that temporarily halt business operations.
In addition to business interruption insurance, Crown Gold Exchange requires franchisees to maintain other insurance policies, including "special" causes of loss coverage, commercial general liability insurance with a minimum of $1,000,000 single limit per occurrence and $2,000,000 aggregate limit, jeweler's insurance coverage of at least $1,000,000, and worker's compensation coverage as mandated by state law.
The Crown Gold Exchange FDD specifies that all insurance policies (excluding worker's compensation) must list Crown Gold Franchising and its affiliates as additional insured parties and include a waiver of subrogation in their favor. These policies must also be primary and non-contributing with any insurance held by Crown Gold Franchising or its affiliates. Furthermore, Crown Gold Franchising must receive 30 days' prior written notice of any policy cancellation. Franchisees are required to provide certificates of insurance to Crown Gold Franchising before opening and upon annual renewal, as well as at any time upon request.