What is the minimum commercial auto liability limit required for an Epcon Communities franchisee?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
overage for residential work performed by subcontractors on your behalf or liability assumed under construction contracts.
The policy must name you and all project entities as named insureds and Epcon Communities Franchising, LLC as an additional insured, using ISO Additional Insured Endorsement CG2029 (04-13 or 12-19) or its equivalent which provides premises and completed operations coverage. You must carry workers compensation insurance, including an employer's liability limit of $500,000, and commercial auto liability (primary) providing limits of at least $1,000,000 for each occurrence, combined single limits. You must also carry umbrella / excess liability Insurance written on an "occurrence," not a "claims-made" basis, providing coverage in excess of the underlying employer's liability, commercial general liability, and commercial automobile liability insurance, on terms at lea
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 32–35)
What This Means (2025 FDD)
According to Epcon Communities' 2025 Franchise Disclosure Document, franchisees must maintain commercial auto liability insurance with a minimum limit of $1,000,000 for each occurrence, utilizing a combined single limit. This insurance coverage is a primary requirement.
In addition to the commercial auto liability coverage, Epcon Communities franchisees are also required to carry workers' compensation insurance, including an employer's liability limit of $500,000. Furthermore, they must secure umbrella/excess liability insurance written on an "occurrence" basis, not a "claims-made" basis. This excess coverage should provide limits of not less than $5,000,000 per occurrence and in the annual aggregate, covering amounts exceeding the underlying employer's liability, commercial general liability, and commercial automobile liability insurance.
The insurance policy must name the franchisee and all project entities as named insureds, and Epcon Communities Franchising, LLC as an additional insured, using ISO Additional Insured Endorsement CG2029 (04-13 or 12-19) or its equivalent. All insurance must be placed with an insurance carrier or carriers with an A.M. Best's rating of "A-" and an A.M. Best's Class rating of "x" (or better), duly licensed in the state in which the project is located, or be approved in writing by Epcon Communities. These requirements ensure that Epcon Communities is protected from potential liabilities arising from the franchisee's operations.
The FDD emphasizes that the franchisee's obligation to maintain the specified insurance coverages is not limited by any insurance that Epcon Communities may maintain, nor does it relieve the franchisee of liability under any indemnity provisions of the Franchise Agreement. Epcon Communities retains the right to require that public liability policies contain a provision allowing them to recover under the policy even in the event of the franchisee's negligence. Franchisees must also adhere to any other insurance-related obligations outlined in the Franchise Agreement.