What is the minimum Business Automobile Liability insurance amount required by Fly To Fit?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
nt as Exhibit D).
- B. Insurance. You must obtain insurance as described in the Franchise Agreement and in our Brand Standards Manual, which includes (i) "Special" causes of loss coverage forms, including fire and extended coverage, crime, vandalism, and malicious mischief, on all property of the Business, for full repair and replacement value (subject to a reasonable deductible); (ii) Business interruption insurance covering at least 12 months of income; (iii) Commercial General Liability insurance, including products liability coverage, and broad form commercial liability coverage, written on an "occurrence" policy form in an amount of not less than $1,000,000 single limit per occurrence and $2,000,000 aggregate limit, (iv) Business Automobile Liability insurance including owned, leased, non-owned and hired automobiles coverage in an amount of not less than $1,000,000, and (v) Workers Compensation coverage as required by state law. Your policies (other than Workers Compensation) must list us and our affiliates as an additional insured, must include a waiver of subrogation in favor of us and our affiliates, must be primary and non-contributing with any insurance carried by us or our affiliates, and must stipulate that we receive 30 days' prior written notic
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 19–21)
What This Means (2024 FDD)
According to Fly To Fit's 2024 Franchise Disclosure Document, franchisees must maintain Business Automobile Liability insurance. This insurance must include coverage for owned, leased, non-owned, and hired automobiles. The minimum coverage amount required is $1,000,000.
This requirement ensures that Fly To Fit franchisees have adequate financial protection in case of accidents involving vehicles used in the business. The coverage extends to various types of vehicle usage, offering broad protection. Franchisees need to factor in the cost of this insurance when assessing the overall investment and operating expenses of the franchise.
In addition to the minimum coverage amount, Fly To Fit requires that the insurance policy lists Fly To Fit and its affiliates as additional insured parties. The policy must also include a waiver of subrogation in favor of Fly To Fit and its affiliates. Furthermore, the policy must be primary and non-contributing with any insurance carried by Fly To Fit or its affiliates, and stipulate that Fly To Fit receive 30 days' prior written notice of cancellation. These stipulations protect Fly To Fit from potential liabilities and ensure they are informed of any changes to the franchisee's insurance coverage.