Must the Dryject commercial general liability insurance coverage be written on an occurrence basis or a claims-made basis?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree to maintain insurance as follows:
- (ii) You shall maintain or cause to be maintained commercial general liability insurance, including premise liability, products/completed-operations and contractual liability, covering claims for bodily injury or property damage caused as a result of the operation of the Franchised Business and pursuant to this Agreement in amounts set forth in the Operations Manual, currently not less than One Million Dollars ($1,000,000.00) for each occurrence and Two Million Dollars ($2,000,000.00) general aggregate.
Coverage must be written on an occurrence basis only, not claims-made;
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, the commercial general liability insurance coverage must be written on an occurrence basis, and not on a claims-made basis. This requirement is part of the insurance obligations that Dryject franchisees must adhere to.
This means that the policy must cover incidents that occur during the policy period, regardless of when a claim is filed. An occurrence-based policy protects the franchisee from claims arising from incidents that happened while the policy was active, even if the claim is made years later. This is generally more favorable for the insured compared to a claims-made policy, which only covers claims reported during the policy period.
In addition to the commercial general liability insurance, Dryject franchisees are also required to maintain commercial automobile liability insurance with a minimum of $1,000,000.00 combined single limit, workers' compensation insurance as required by applicable law, and an umbrella policy as extended coverage to the commercial general liability, auto liability and employers liability insurance with a minimum of $1,000,000.00. These policies must name Dryject as an additional insured/loss payee.
Dryject also reserves the right to increase the minimum limits and change or add new types of required coverage as detailed in the Operations Manual. Franchisees must provide certificates of insurance evidencing their compliance at least ten days before opening their Dryject franchise.