What specific liability coverage must the insurance policy for an Epcon Communities franchisee include?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
estimate that the conceptual site plan will cost approximately $4,000 to $4,750 for a 12 to 25-acre site.
Insurance
You must maintain builder's risk and general liability insurance in an amount not less than $1,000,000 per occurrence and $2,000,000 per project annual aggregate covering more than one person, and with a deductible or self-insured retention on the policy of no more than $1,000. We have the right to require you to obtain other types of insurance and to change the coverage, deductible and self-insurance retention amounts.
Your insurance policy must include coverage for liability arising from your development of a project, premises-operations, independent contractors and products-completed operations. The policy may not contain any restrictive endorsements or policy language which excludes coverage 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 specific liability coverage in their insurance policies. The 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, which provides premises and completed operations coverage. Additionally, franchisees 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.
Furthermore, Epcon Communities requires franchisees to carry umbrella/excess liability insurance written on an "occurrence," not a "claims-made" basis. This excess coverage must provide coverage beyond the underlying employer's liability, commercial general liability, and commercial automobile liability insurance, with terms at least as broad as the underlying coverage. The limits for this umbrella/excess liability insurance must be no less than $5,000,000 per occurrence and in the annual aggregate.
In addition to the above, franchisees must maintain builder's risk and general liability insurance in an amount not less than $1,000,000 per occurrence and $2,000,000 per project annual aggregate covering more than one person, with a deductible or self-insured retention on the policy of no more than $1,000. The insurance policy must include coverage for liability arising from the franchisee's development of a project, premises-operations, independent contractors, and products-completed operations. The policy cannot contain any restrictive endorsements or policy language which excludes coverage for residential work performed by subcontractors on the franchisee's behalf or liability assumed under construction contracts. Epcon Communities retains the right to require franchisees to obtain other types of insurance and to change the coverage, deductible, and self-insurance retention amounts.