What are the required aggregate and per occurrence limits for Fitstop's Excess or Umbrella Insurance?
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 Excess or Umbrella Insurance with specific coverage limits. This insurance policy must provide coverage of $5,000,000 per occurrence and $5,000,000 in the aggregate.
Excess or Umbrella Insurance provides an extra layer of liability coverage above the limits of the franchisee's other primary insurance policies, such as Comprehensive General Liability and Business Automobile Liability. The "per occurrence" limit refers to the maximum amount the insurance company will pay for a single incident, while the "aggregate" limit is the total amount the insurer will pay for all claims during the policy term (usually one year).
Maintaining adequate insurance coverage is crucial for protecting the franchisee's business and personal assets from potential financial losses due to lawsuits, accidents, or other unforeseen events. Fitstop also requires that they, and any party they designate, are named as additional insureds on the policy, applying to both ongoing and completed operations coverage. Franchisees must also provide evidence of premium payments and duplicate copies of the policies to Fitstop no less than 30 days before opening or the expiration of an existing policy.