What is the minimum limit for Employer's Liability insurance required for a Del Taco franchise?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
of Franchisee under Section 16.1.3 of this Agreement. The limit requirements can be satisfied by a combination of primary limits and umbrella/excess liability limits.
- 11.1.1.2 Business Automobile Liability insurance including owned, leased, non-owned and
Source: Item 22 — CONTRACTS (FDD pages 58–59)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, franchisees must maintain Employer's Liability insurance with a minimum limit of $1,000,000 per occurrence. This insurance is in addition to Workers' Compensation insurance, which franchisees must carry as required by law.
The Employer's Liability insurance protects Del Taco franchisees against lawsuits from employees who are injured on the job but whose injuries are not covered by workers' compensation. This type of insurance often covers situations where an employee sues for negligence. Meeting this requirement is crucial for a Del Taco franchisee to ensure they are operating within the bounds of the franchise agreement and protecting their business from potential financial liabilities related to employee injuries.
Del Taco also mandates that franchisees provide proof of insurance coverage to Del Taco before opening their restaurant and throughout the term of the franchise agreement. This proof must be in the form of Certificates of Insurance and any required insurance policy endorsements. Del Taco retains the right to modify these insurance requirements, potentially increasing the coverage amounts or adding new types of required insurance. Therefore, prospective franchisees should stay informed about any updates to the insurance requirements to remain compliant with the franchise agreement.