What is the minimum Commercial General Liability coverage per occurrence required for Deka Lash franchisees?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
ire you to use a specific architect, project and/or construction management company.
Insurance. You must maintain insurance policies protecting you and us (as additional insured). The policies must be written by an A.M. Best "A" or better rated insurance company and must include the following types and minimum amounts of coverage, as well as any other insurance as required in the Operations Manual and any other insurance as may be required by state law.
Commercial General Liability: Coverage including bodily injury, property damage, and personal injury. Per occurrence $1,000,000, annual policy aggregate of $2,000,000.
Rented Premise and Fire Legal Liability: Coverage of $250,000.
Automobile: Coverage for all owned, non-owned and hired vehicles of $1,000,000 for uninsured and underinsured motorist, bodily injury and property damage. Must include statutory personal injury protection per individual state requirements.
Workers' Compensation/Employers Liability: As required by statute, workers' compensation coverage for employees and all owner(s) of $500,000 of employer's liability limits of protection.
You must name DL Franchising, LLC and their respective affiliates, officers, directors, members and agents and others as their interest may appear on a primary, noncontributory basis as an additional insured on these policies and send proof of the same to us. Certificates of insurance must be sent in upon the annual expiration date.
Area Developers must maintain insurance as required under their individual franchise agreements for Franchised Businesses to be open within the Development Area.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 27–30)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, franchisees must maintain specific insurance policies to protect themselves and Deka Lash as an additional insured. These policies must be written by an insurance company with an A.M. Best rating of "A" or better.
The minimum Commercial General Liability coverage required includes coverage for bodily injury, property damage, and personal injury. The policy must provide at least $1,000,000 per occurrence and have an annual policy aggregate of $2,000,000. Additionally, franchisees need Rented Premise and Fire Legal Liability coverage of $250,000 and Automobile coverage of $1,000,000 for owned, non-owned, and hired vehicles, including uninsured and underinsured motorist, bodily injury, and property damage, along with statutory personal injury protection as required by individual state laws.
Furthermore, franchisees must secure Workers' Compensation/Employers Liability coverage as required by statute, including workers' compensation coverage for employees and $500,000 of employer's liability limits of protection for all owners. Deka Lash and its affiliates, officers, directors, members, and agents must be named as additional insured on a primary, noncontributory basis on these policies. Franchisees are required to provide proof of insurance to Deka Lash upon the annual expiration date of the policies. Area Developers must also maintain insurance as required under their individual franchise agreements for Franchised Businesses operating within their Development Area.