What are the minimum coverage limits for commercial general liability insurance required for a Dermani Medspa franchise?

According to Dermani Medspa's 2025 Franchise Disclosure Document, franchisees are required to maintain commercial general liability insurance with specific minimum coverage limits. The minimum coverage must be One Million Dollars ($1,000,000) per occurrence and Two Million Dollars ($2,000,000) annual aggregate.

In addition to commercial general liability insurance, Dermani Medspa requires franchisees to secure and maintain other types of insurance coverage, including automobile liability insurance, workers' compensation insurance, umbrella liability insurance, medical professional liability insurance, and property insurance. Each of these policies has its own minimum coverage requirements as detailed in the FDD.

Dermani Medspa retains the right to increase the required coverage amounts or mandate different or additional insurance coverage at any time. This adjustment can occur due to factors such as inflation, the identification of new risks, changes in laws or liability standards, or higher damage awards. Furthermore, franchisees must name Dermani Medspa Franchising LLC and its parent company, LazCoz LLC, as additional insured parties on a primary and non-contributory basis for the commercial general liability, automobile liability, professional liability, and umbrella liability insurance policies. Franchisees must also provide Dermani Medspa with 30 days' written notice of any material modification, cancellation, or expiration of these policies.

It is important for prospective Dermani Medspa franchisees to understand these insurance requirements and factor the costs of obtaining and maintaining the necessary coverage into their financial planning. Failure to maintain the required insurance 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. Therefore, franchisees should consult with qualified insurance professionals to ensure they meet all of Dermani Medspa's insurance requirements and remain compliant throughout the term of their franchise agreement.