What is the minimum umbrella/excess liability insurance limit per occurrence required for an Epcon Communities franchisee?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
d 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 specific insurance coverage, including umbrella/excess liability insurance. This insurance must be written on an "occurrence" basis, not a "claims-made" basis.
The umbrella/excess liability insurance provides coverage beyond the limits of the franchisee's underlying employer's liability, commercial general liability, and commercial automobile liability insurance. The terms of the umbrella coverage must be at least as broad as the underlying coverage.
Epcon Communities requires a minimum limit of $5,000,000 per occurrence and in the annual aggregate for this umbrella/excess liability insurance. This requirement ensures that franchisees have sufficient financial protection against potential large claims or lawsuits arising from their business operations. Franchisees should factor in the cost of this insurance when evaluating the overall investment and operating expenses associated with an Epcon Communities franchise.