Must the Commercial General Liability insurance for a Del Taco franchise exclude occurrences arising from food-borne illness?

According to Del Taco's 2025 Franchise Disclosure Document, the Commercial General Liability insurance for a franchisee must not contain an exclusion for occurrences arising from food-borne illness. This insurance must include Products Liability coverage and Broad Form Contractual Liability coverage, written on a "per occurrence" policy form. The required amount is not less than $5,000,000 combined single limit per occurrence and aggregate.

This requirement ensures that Del Taco franchisees are protected from potential liabilities related to food-borne illnesses, which can be a significant risk in the restaurant industry. By explicitly stating that the insurance must not exclude these occurrences, Del Taco is emphasizing the importance of covering such risks. This protects both the franchisee and the brand from potential financial losses due to lawsuits or claims related to food safety issues.

The insurance policy must also insure the contractual liability of the franchisee under Section 16.1.3 of the Franchise Agreement, which likely pertains to indemnification clauses. The limit requirements can be met through a combination of primary limits and umbrella/excess liability limits, providing some flexibility in structuring the insurance coverage. Franchisees must also provide renewal certificates of insurance to Del Taco no later than 30 days prior to the expiration date of all policies.

Overall, these insurance requirements are in place to mitigate risks associated with operating a Del Taco restaurant and to protect the interests of both the franchisee and the franchisor. Prospective franchisees should carefully review these requirements and ensure they can obtain the necessary insurance coverage to comply with Del Taco's standards.