What is the required coverage for Workers Compensation for a Crown Gold Exchange franchise?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 FDD Document
nt as Exhibit D).
- B. Insurance. You must obtain insurance as described in the Franchise Agreement and in our Brand Standards Manual, which includes (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. Your policies (other than Workers Compensation) must list us and our affiliates as an additional insured, must include a waiver of subrogation in favor of us and our affiliates, must be primary and non-contributing with any insurance carried by us or our affiliates, and must stipulate that we receive 30 days' prior written notic
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 15–17)
What This Means (2024 FDD)
According to Crown Gold Exchange's 2024 Franchise Disclosure Document, franchisees must obtain Workers Compensation coverage as required by state law. This means the specific amount of coverage will vary depending on the state in which the franchise operates, as each state has its own regulations regarding workers' compensation insurance.
Workers' compensation insurance is designed to protect employees in the event of work-related injuries or illnesses. It covers medical expenses, lost wages, and rehabilitation costs. By requiring franchisees to maintain workers' compensation coverage as mandated by state law, Crown Gold Exchange ensures that its franchisees are compliant with local regulations and that their employees are protected financially if they experience a workplace injury or illness.
Prospective Crown Gold Exchange franchisees should research the specific workers' compensation requirements in their state to determine the necessary coverage levels and associated costs. They should also factor in the cost of this insurance when projecting their overall business expenses. It is also important to note that Crown Gold Exchange requires other insurance policies, such as Commercial General Liability insurance, Jeweler's Insurance, and property insurance, with specific coverage amounts and terms, but the Workers Compensation is only specified to be compliant with state law.