What is the minimum aggregate limit required for employment practices liability insurance for a Crowne Plaza franchise, and what types of coverage must it include?

According to Crowne Plaza's 2025 Franchise Disclosure Document, franchisees are required to maintain employment practices liability insurance. This insurance must include coverage for harassment, discrimination, and wrongful termination, covering both defense and indemnity costs. The minimum required limit for this insurance is $1,000,000 per occurrence in the aggregate.

This requirement ensures that Crowne Plaza franchisees are financially protected against potential employee lawsuits related to employment practices. By including coverage for harassment, discrimination, and wrongful termination, the insurance addresses common areas of employment-related legal risk. The $1,000,000 limit provides a financial buffer to cover legal defense costs and potential settlement or judgment amounts.

Franchisees should factor the cost of this insurance into their operating budget. Premiums for liability insurance can vary based on factors such as the location and size of the hotel, payroll size, and loss history. It is important for prospective franchisees to obtain quotes from multiple insurance providers to ensure they are getting competitive rates and adequate coverage.

Failure to maintain the required insurance coverage can have significant consequences. Crowne Plaza has the right, but not the obligation, to procure the insurance at the franchisee's expense if the franchisee fails to do so. This could result in higher premiums and additional costs for the franchisee. Therefore, it is crucial for franchisees to comply with the insurance requirements outlined in the Franchise Disclosure Document and the License Agreement.