What is the aggregate minimum liability coverage required for comprehensive commercial general liability and motor vehicle liability insurance for a Degree Wellness Licensed Provider?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
HALL BE INTERPRETED AS DIRECTING OR INFLUENCING SUCH REFERRALS. NONE OF MANAGEMENT COMPANY'S SERVICES HEREUNDER SHALL CONSTITUTE OBLIGATIONS OF MANAGEMENT COMPANY TO GENERATE PATIENTS TO LICENSED PROVIDER.
8. Insurance.
8.1 During the Agreement Term, Licensed Provider must maintain in force, under policies of insurance issued by carriers in good standing in the state where the Premises is located: (1) comprehensive commercial general liability and motor vehicle liability insurance against claims for bodily and personal injury, death and property damage caused by or occurring in conjunction with the operation of the Studio or otherwise in conjunction with the performance of the Licensed Provider Services pursuant to this Agreement, under one or more policies of insurance containing minimum liability coverage of not less than $1,000,000 per occurrence and $3,000,000 in the aggregate; (2) worker's compensation and employer's liability insurance as required by law, with limits equal to or in excess of those required by statute; (3) professional liability (malpractice) insurance, for each doctor providing the Licensed Provider Services, having limits of not less than $1,000,000 per occurrence and $3,000,000 in the aggregate; and (4) any other insurance required by applicable law, rule, regulation, ordinance or licensing requirements. Management Company may periodically increase or decrease the amounts of coverage required under these insurance policies, and/or require different or additional kinds of insurance, including excess liability insurance, to reflect inflation, identification of new risks, changes in law or standards of liability, higher damage awards, or other relevant changes in circumstances. Licensed Provider agrees that compliance with any state minimum insurance requirements does not relieve Licensed Provider from the obligation to comply with the contractual insurance requirements in this Agreement.
8.2 Licensed Provider must provide Management Company with 30 days' advance written notice of any material modification, cancellation, or expiration of any policy.
8.3 Deductibles must be in reasonable amounts and are subject to review and written approval by Management Company.
8.4 Licensed Provider's commercial general liability insu
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 63–66)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, a Licensed Provider must maintain comprehensive commercial general liability and motor vehicle liability insurance. This insurance protects against claims for bodily and personal injury, death, and property damage related to the Studio's operation or the Licensed Provider Services. The minimum liability coverage required is $1,000,000 per occurrence and $3,000,000 in the aggregate.
In addition to the commercial general liability and motor vehicle liability insurance, Degree Wellness requires worker's compensation and employer's liability insurance as mandated by law, professional liability (malpractice) insurance for each doctor providing services with limits of not less than $1,000,000 per occurrence and $3,000,000 in the aggregate, and any other insurance required by applicable law. Degree Wellness may adjust the required coverage amounts or types of insurance to reflect factors like inflation or changes in liability standards. Compliance with state minimum insurance requirements does not relieve the Licensed Provider from meeting the contractual insurance obligations outlined in the agreement.
The Licensed Provider must provide Degree Wellness with 30 days' advance written notice of any material modification, cancellation, or expiration of any insurance policy. Deductibles must be reasonable and are subject to Degree Wellness's review and written approval. The commercial general liability insurance policy must be an "occurrence" policy and must name Management Company, Degree Wellness, and their respective owners, directors, employees, agents, and affiliates as additional insured parties on a primary and noncontributory basis.
Prospective franchisees should carefully review these insurance requirements with their insurance advisors to ensure they can obtain the necessary coverage and understand the associated costs. It is also important to note that Degree Wellness's insurance requirements are for its own protection, and franchisees should determine what additional coverage they may need or desire beyond the specified minimums.