What is the minimum required coverage per occurrence for General Liability Insurance that Itan franchisees must maintain?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
Alfred M. Best & Company, Inc., including the following:
| "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 la |
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 General Liability Insurance with a minimum coverage of $1,000,000 per occurrence and $2,000,000 in the aggregate. This insurance coverage is one of several that Itan mandates franchisees to secure from licensed insurance carriers with a rating of A or better by Alfred M. Best & Company, Inc. Other required insurance policies include "All risk" Property Insurance, Product Liability and Personal Injury Insurance, Automobile Liability Insurance, Business Interruption Insurance, Employer's Liability Insurance, Worker's Compensation Insurance, and Landlord-Required Insurance.
The General Liability Insurance protects the Itan franchise location from financial losses if someone is injured on the property or if the business is responsible for damage to someone else's property. The 'per occurrence' limit means that for each separate incident, the insurance will cover up to $1,000,000 in damages. The 'aggregate' limit of $2,000,000 is the total amount the insurance policy will pay out during the policy term, regardless of the number of individual occurrences.
Itan also requires that each insurance policy be endorsed to name Itan and its owners, officers, and directors as additional insureds. This protects Itan from liability related to the franchisee's operations. The policies must also waive all subrogation rights against Itan, meaning the insurance company cannot seek to recover costs from Itan if they pay out a claim on behalf of the franchisee. Furthermore, Itan requires 30 days' prior written notice of any termination, expiration, cancellation, or modification of the policy, ensuring Itan is aware of any changes in coverage.
For a prospective Itan franchisee, these insurance requirements represent a significant ongoing cost of doing business. It is important to obtain quotes from multiple insurance providers to ensure competitive rates and adequate coverage. Franchisees should also confirm that the insurance policies meet all of Itan's specific requirements to avoid any compliance issues. The franchisor retains the right to modify the required coverage and policies, so franchisees must stay informed of any changes.