What is the minimum coverage amount required for property insurance for a Dermani Medspa franchise?

According to Dermani Medspa's 2025 Franchise Disclosure Document, franchisees must secure property insurance that covers direct physical loss or damage to real and personal property. This insurance must cover all risk perils, including flood and earthquake. The minimum coverage limit for this property insurance is $200,000.

Dermani Medspa also mandates other insurance coverages, including commercial general liability insurance with minimum limits of $1,000,000 per occurrence and $2,000,000 annual aggregate; automobile liability insurance with a minimum combined single limit of $1,000,000 per occurrence; workers' compensation insurance with minimum employers' liability limits of $1,000,000 each accident; umbrella liability insurance with minimum limits of $2,000,000 per occurrence and annual aggregate; and medical professional liability insurance with minimum limits of $1,000,000 per occurrence and $3,000,000 annual aggregate.

Dermani Medspa retains the right to increase the required coverage amounts or mandate different or additional insurance coverage at any time. These changes may be due to factors such as inflation, the identification of new risks, changes in laws or liability standards, or higher damage awards. Franchisees must name dermani MEDSPA® Franchising LLC and its parent company, LazCoz LLC, as additional insured parties on their commercial general liability, automobile liability, professional liability, and umbrella liability insurance policies.

It is important for prospective Dermani Medspa franchisees to factor in these insurance requirements as part of their initial investment and ongoing operational costs. Failure to maintain the required insurance coverage can result in Dermani Medspa obtaining insurance on the franchisee's behalf, with the franchisee responsible for reimbursing all premiums, costs, and expenses, plus a 10% administrative fee.