What is the minimum required per occurrence limit for Business Automobile Liability insurance, including owned, hired, and non-owned automobile insurance, that a Fitstop franchisee must maintain?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Insurance | Limits | |
|---|---|---|
| Employee Dishonesty /“3-D” | $300,000 (per Occurrence) | |
| Comprehensive Crime Insurance | ||
| Comprehensive General Liability | $2,000,000 (General Aggregate) $2,000,000 (Products/Completed Operations) | |
| Comprehensive General Liability | $1,000,000 | |
| Business Automobile Liability, including owned, | $1,000,000 (per Occurrence) | |
| hired and non-owned automobile insurance | ||
| Excess or Umbrella Insurance | $5,000,000 (per Occurrence & Aggregate) | |
| Workers Compensation Insurance | Statutory Limits | |
| Employers Liability Insurance | $1,000,000/$1,000,000/$1,000,000 |
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, franchisees are required to maintain Business Automobile Liability insurance with a minimum per occurrence limit of $1,000,000. This insurance must cover owned, hired, and non-owned automobiles used in the Fitstop business.
This requirement ensures that Fitstop franchisees have adequate financial protection in the event of an automobile accident involving their business. The $1,000,000 per occurrence limit means that for each separate incident involving a vehicle, the insurance policy will cover up to $1,000,000 in damages and legal costs. This coverage extends to vehicles the franchisee owns, rents, or uses for business purposes, even if they are not owned by the franchisee.
Franchisees must secure this insurance coverage from a reputable insurance company licensed to do business in the state where their Fitstop franchise is located. The insurance company must have a Financial Size Category equal to or greater than IX and a Policyholders Rating of "A+" or "A", as assigned by Alfred M. Best and Company, Inc., unless Fitstop approves otherwise. Additionally, Fitstop requires evidence of payment of premiums and duplicate copies of the insurance policies at least 30 calendar days before opening for business and 30 calendar days before the expiration of an existing policy.
It is important to note that Fitstop retains the right to increase the required insurance limits or add new types of coverage as deemed necessary to comply with federal, state, and local laws or as dictated by changing circumstances. Failure to maintain the required insurance coverage could result in Fitstop purchasing the insurance on the franchisee's behalf and deducting the costs from any payments made to the franchisee, or potentially relieving themselves of obligations with respect to the insurance coverage by giving 10 calendar days written notice.