What are the insurance coverage requirements for Employer's Liability Insurance and Worker's Compensation Insurance for Itan franchisees?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
| "All risk" Property Insurance | Replacement Value |
|---|---|
| General Liability Insurance | $1,000,000 per occurrence and $2,000,000 in the aggregate |
| Product Liability and Personal Injury Insurance | $1,000,000 per occurrence and $2,000,000 in the aggregate |
| Automobile Liability Insurance | $1,000,000 per occurrence |
| Business Interruption Insurance | At least 12 months' coverage |
| Employer's Liability Insurance | As required by law |
| Worker's Compensation Insurance | As required by law |
| Landlord-Required Insurance | As required by lease |
The required coverage and policies are subject to change. Each policy must be endorsed to: (a) name us and our owners, officers and directors as additional insureds; (b) waive all subrogation rights against us; and (c) provide us with 30 days' prior written notice of the termination, expiration, cancellation or modification of the policy.
Purchase Agreements
We attempt to negotiate purchase agreements with suppliers, including favorable pricing terms, for the benefit of franchisees.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 18–21)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, franchisees are required to maintain Employer's Liability Insurance and Worker's Compensation Insurance as mandated by law. This means the specific coverage amounts will vary depending on the legal requirements in the franchisee's location.
Itan requires franchisees to obtain insurance coverage from licensed insurance carriers with a rating of A or better by Alfred M. Best & Company, Inc. Franchisees must ensure that all insurance policies are endorsed to include Itan and its owners, officers, and directors as additional insureds. The policies must also waive all subrogation rights against Itan and provide them with 30 days' prior written notice of any termination, expiration, cancellation, or modification of the policy.
Prospective Itan franchisees should investigate the specific legal requirements for Employer's Liability Insurance and Worker's Compensation Insurance in their state or local jurisdiction to understand the potential costs and coverage levels needed. It is also important to factor in the cost of obtaining insurance from carriers that meet Itan's minimum rating requirements and to ensure compliance with the endorsement and notification stipulations.