What is the minimum aggregate liability protection required for the comprehensive general liability insurance for an Itan Salon?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
e our agreement to the contrary, the bond amount may not exceed $1,000. No remedy available to us under this Agreement is exclusive of any other, but may be combined with others under this Agreement, or at Law or in equity, including injunctive relief, specific performance and recovery of monetary damages.
15. YOUR OTHER RESPONSIBILITIES
15.1. Insurance. For your protection and ours, you agree to maintain the following insurance policies:
- (a) "all risk" property insurance, including coverage for fire, vandalism and malicious mischief, with minimum coverage for full replacement cost, covering all assets including inventory, furniture, fixtures, equipment and other property used to operate the Salon;
- (b) comprehensive general liability insurance against claims for bodily and personal injury, death and property damage caused by or occurring in conjunction with the operation of your Salon, with minimum liability protection of $2,000,000 combined single limit per occurrence and $2,000,000 in the aggregate;
- (c) specialty product liability and personal injury insurance for bodily and personal injury or death caused by or occurring in connection with any treatments received or products purchased at your Salon that are not covered by your general liability insurance, with minimum liability protection of $1,000,000 combined single limit per occurrence and $2,000,000 in the aggregate;
(d) automobile liability and property damage insurance covering all loss, liability, claim or expense of any kind whatsoever resulting from the use, operation, or maintenance of any automobiles or motor vehicles, owned, leased or used by you or your officers, directors, employees, partners or agents in the operation of your Salon, with minimum liability protection of $1,000,000 combined single limit per occurrence;
(e) business interruption insurance providing coverage for 100% of all expenses and financial obligations for a minimum period of 12 months, including fees owed to us, which shall be deemed to include average weekly ro
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, franchisees are required to maintain comprehensive general liability insurance. This insurance protects against claims for bodily and personal injury, death, and property damage that may occur in conjunction with the operation of their Itan salon. The minimum liability protection required is $2,000,000 combined single limit per occurrence and $2,000,000 in the aggregate.
In practical terms, this means that for each incident, the insurance policy must cover up to $2,000,000 in damages. Additionally, the total coverage available under the policy for all claims during the policy period must also be at least $2,000,000. Itan also requires franchisees to maintain other insurance policies, including property insurance, specialty product liability insurance, automobile liability insurance, business interruption insurance, and worker's compensation insurance.
It is important to note that these are minimum requirements, and Itan advises franchisees to procure additional coverage if they deem it necessary. Franchisees must also ensure that their insurance policies meet specific criteria, such as being obtained from licensed carriers with an AM Best rating of A or better, naming Itan as an additional insured, waiving subrogation rights against Itan, and providing Itan with advance notice of any policy changes. Itan retains the right to increase the minimum liability coverage amounts or require additional types of insurance due to various factors, such as inflation or changes in liability standards.