What is the minimum limit for excess liability coverage required for an Extreme Art Studio franchise?

According to Extreme Art Studio's 2024 Franchise Disclosure Document, franchisees must maintain excess liability coverage of at least $1,000,000 during the term of the Franchise Agreement. This coverage is in addition to other required insurance policies, such as comprehensive general liability, automobile liability, and product liability insurance.

The purpose of excess liability coverage is to provide an additional layer of protection beyond the limits of the franchisee's other liability policies. This can be crucial in the event of a major claim or lawsuit that exceeds the limits of the primary policies. Franchisees should understand that the actual types and amounts of coverage are subject to change and may differ depending on the type of Extreme Art Studio Business they operate.

Extreme Art Studio also retains the right to increase the required coverage amounts or require different or additional insurance coverage to reflect inflation, new risks, changes in law, or other relevant changes in circumstances. Furthermore, Extreme Art Studio reserves the right to require franchisees to obtain their insurance policies from a designated vendor. Franchisees must furnish copies of their insurance certificates to Extreme Art Studio at least 30 days prior to opening and as routinely as requested.