Does the insurance need to protect against business interruption for a Gokhale Method franchise?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
surance
You must maintain in force commercial general liability insurance protecting you, us, and the parties' respective officers, directors, partners, agents and employees against any demand or claim with respect to personal injury, death or property damage, business interruption, or any loss, liability or expense whatsoever arising or occurring upon or in connection with the Franchised Business, including, but not limited to, comprehensive general liability insurance, property insurance (including, but not limited to, fire, vandalism, and malicious mischief insurance for the replacement value of the Franchised Business and its contents), casualty insurance, business interruption insurance, statutory workers' compensation insurance, and automobile insurance coverage for all vehicles used in connection with the operation of the Franchised Business. All insurance policies must: (1) be issued by carriers approved by us; (2) contain the types and minimum amounts of coverage, exclusions and maximum deductibles as we prescribe periodically; (3) name us and our Affiliates as additional insureds; (4) provide for 30 days' prior written notice to us of any material modification, cancellation or expiration of such policy; and (5) include such other provisions as we may require periodically. We do not require you to purchase insurance from any particular source.
Identified below are the types and minimum coverage amounts that currently we require for each franchised Gokhale Method business. If your state requires greater coverage amounts for the categories listed below, you must obtain and maintain coverage as required by your state.
COMMERCIAL GENERAL LIABILITY:
General Aggregate Limit: $3,000,000 Personal Injury Limit: $1,000,000
COMMERCIAL OR PERSONAL AUTOMOBILE LIABILITY:
Bodily Injury and Property Damage Combined Single Limit: $1,000,000 Hired and Non-Owned Liability Limit: $1,000,000
Please note, the landlord for the location where you conduct your classes may have its own insurance coverage requirements that apply additionally to our requirements for insurance c
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 15–17)
What This Means (2024 FDD)
According to Gokhale Method's 2024 Franchise Disclosure Document, franchisees must maintain commercial general liability insurance that includes business interruption coverage. This insurance protects the franchisee, Gokhale Method, and their respective officers, directors, partners, agents, and employees against claims related to personal injury, death, property damage, business interruption, or any loss, liability, or expense connected with the franchised business.
The required insurance coverage includes comprehensive general liability insurance, property insurance (covering fire, vandalism, and malicious mischief), casualty insurance, business interruption insurance, statutory workers' compensation insurance, and automobile insurance for all vehicles used in the business. The insurance policies must be issued by carriers approved by Gokhale Method, contain the types and minimum amounts of coverage, exclusions, and maximum deductibles prescribed by Gokhale Method periodically. Additionally, Gokhale Method and its affiliates must be named as additional insureds, and the insurance provider must give 30 days' prior written notice of any material modification, cancellation, or expiration of the policy.
The FDD specifies minimum coverage amounts for commercial general liability and commercial or personal automobile liability. The General Aggregate Limit for commercial general liability is $3,000,000, with a Personal Injury Limit of $1,000,000. For commercial or personal automobile liability, the Bodily Injury and Property Damage Combined Single Limit is $1,000,000, as is the Hired and Non-Owned Liability Limit. Franchisees must obtain and maintain coverage as required by their state if the state requires greater coverage amounts than those listed. Franchisees should also be aware that the landlord for the location where classes are conducted may have additional insurance requirements.