What is the minimum liability protection required for the comprehensive general liability insurance policy for an Itan Salon?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
r 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
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 for their salon. This insurance policy must protect against claims for bodily and personal injury, death, and property damage that occur in conjunction with the operation of the Itan salon. The minimum liability protection required is $2,000,000 combined single limit per occurrence and $2,000,000 in the aggregate.
Itan also mandates that franchisees procure other insurance policies, including 'all risk' property insurance, specialty product liability and personal injury insurance, automobile liability and property damage insurance, business interruption insurance, and worker's compensation and employer's liability insurance as required by law. Franchisees must also adhere to any insurance requirements stipulated in their lease agreement or by law, as well as any other insurance policies Itan specifies in its manual from time to time.
It is important to note that these insurance policy minimums reflect Itan's requirements and may not be adequate to fully protect the franchisee. Itan advises franchisees to procure additional coverage if they deem it necessary. Franchisees must provide proof of coverage to Itan prior to opening, within 10 days after a policy renewal, and at any other time upon demand. These policies must be obtained from licensed insurance carriers rated A or better by AM Best and must meet all requirements outlined in the manual.
Each policy must also name Itan and its owners, officers, and directors as additional insureds, waive all subrogation rights against Itan, and provide Itan with at least 30 days' prior written notice of any termination, expiration, cancellation, or modification of the policy. Itan retains the right to disapprove any policy that fails to meet these criteria, and franchisees must immediately secure a new policy that meets Itan's standards. Itan may also increase the minimum liability coverage amount of any policy or require different or additional types of insurance due to factors such as inflation, special risks, changes in law, or higher damage awards.