What is the minimum limit for umbrella liability insurance required for a Goldfish Swim School?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
ss sustained basis without coinsurance; automobile liability insurance for owned or hired and non-owned auto with a combined single limit of at least $1,000,000; umbrella liability insurance with a minimum limit of $2,000,000; insurance as necessary to provide coverage under the indemnity provisions; registered participant accident coverage with a minimum limit of $25,000 per person occurrence; and cyber security coverage in
Source: Item 8 — RESTRICTIONS ON SOURCES OF SERVICES AND PRODUCTS (FDD pages 27–30)
What This Means (2025 FDD)
According to Goldfish Swim School's 2025 Franchise Disclosure Document, franchisees are required to maintain umbrella liability insurance with a minimum limit of $2,000,000. This coverage is in addition to other required insurance policies, such as property, workers compensation, and general liability insurance. Goldfish Swim School specifies these insurance requirements in their Brand Standards Manual and reserves the right to change the types and levels of coverage in the future.
Umbrella liability insurance provides an extra layer of protection beyond the limits of the franchisee's other liability policies. This can be crucial in the event of a significant claim or lawsuit that exceeds the coverage limits of the primary policies. The $2,000,000 minimum limit ensures that Goldfish Swim School franchisees have substantial financial protection against potential liabilities.
It is important for prospective franchisees to understand that these insurance requirements are not optional. Maintaining the required insurance coverage is a condition of the franchise agreement, and failure to do so could result in penalties or even termination of the franchise. Franchisees should factor the cost of these insurance policies into their overall business plan and budget.
While the FDD specifies the minimum limit for umbrella liability insurance, it is advisable for prospective franchisees to consult with an insurance professional to determine the appropriate level of coverage for their specific circumstances. Factors such as the location of the swim school, the number of employees, and the volume of customers can all impact the amount of insurance coverage needed.