What is the minimum required amount of public/general liability insurance, including child molestation coverage, per occurrence for a Hyper Kidz franchise?

According to Hyper Kidz's 2024 Franchise Disclosure Document, franchisees must maintain public/general liability insurance, including child molestation coverage, with a minimum of $1,000,000 per occurrence. Additionally, the aggregate coverage must be $2,000,000, and there must be $250,000 coverage for damage to rented premises per occurrence.

This insurance requirement is designed to protect both the franchisee and Hyper Kidz from potential liabilities arising from accidents, injuries, or other incidents that may occur at the franchise location. The inclusion of child molestation coverage highlights the importance of protecting children at the play center. Franchisees must ensure that their insurance policies meet these minimum requirements and are issued by licensed insurers approved by Hyper Kidz.

Hyper Kidz retains the right to modify these insurance requirements, and franchisees are obligated to comply with any such changes. Franchisees must also provide Hyper Kidz with evidence of their insurance policies and renewals. Failure to maintain the required insurance coverage can result in Hyper Kidz obtaining the insurance on the franchisee's behalf, with the franchisee responsible for all costs and a 10% administrative fee. Continued failure to maintain insurance can lead to termination of the franchise agreement.

It is important for prospective Hyper Kidz franchisees to factor these insurance costs into their initial investment and ongoing operating expenses. They should also discuss the insurance requirements with qualified insurance brokers to ensure they obtain adequate coverage that meets Hyper Kidz's standards and protects their business from potential risks.