What is the minimum limit for Business Automobile Liability insurance required for a Del Taco franchise?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
limit per occurrence and aggregate. Such insurance must not contain an exclusion for occurrences arising from food-borne illness, and must insure the contractual liabilit
Source: Item 22 — CONTRACTS (FDD pages 58–59)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, franchisees are required to maintain Business Automobile Liability insurance with a minimum limit of $1,000,000 per accident. This insurance must include coverage for owned, leased, non-owned, and hired automobiles.
This requirement ensures that Del Taco franchisees have adequate financial protection in the event of an automobile accident involving their business operations. The $1,000,000 limit is designed to cover potential liabilities arising from bodily injury or property damage caused by vehicles used in the franchise's operations.
It is important for prospective franchisees to factor in the cost of this insurance when evaluating the overall investment required to start and operate a Del Taco franchise. Franchisees must also ensure that the insurance policy meets all the specific requirements outlined in the Franchise Agreement, including coverage types and limits. Failing to maintain adequate insurance coverage could result in a breach of the Franchise Agreement and potential penalties.