What are the minimum coverage limits for employer's liability insurance required for an Ella Cafe franchised business?
Ella_Cafe Franchise · 2024 FDDAnswer from 2024 FDD Document
he Franchised Businesses property value;
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- Comprehensive general liability insurance, written on an occurrence basis, extended to include contractual liability, products and completed operations, and personal and advertising injury, with a combined bodily injury a
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2024 FDD)
According to Ella Cafe's 2024 Franchise Disclosure Document, franchisees must obtain statutory workers' compensation insurance and employer's liability insurance as required by the law of the state in which their franchised business is located. This includes statutory workers' compensation limits and employer's liability limits of at least $1,000,000.
This means that an Ella Cafe franchisee needs to secure an insurance policy that covers at least $1,000,000 for employer's liability. This coverage protects the franchisee (as the employer) against lawsuits from employees who suffer work-related injuries or illnesses. The specific requirements for workers' compensation will vary based on state law, so franchisees must ensure they meet those requirements as well.
It is important to note that Ella Cafe can change these insurance requirements over time, including the types of coverage and the amounts. Franchisees should also be aware that these minimum insurance requirements do not constitute advice or a representation that such coverages are necessary or adequate to protect them from losses in connection with their center. Franchisees are allowed to acquire and maintain insurance with higher policy limits or lower deductibles than Ella Cafe requires.