What insurance coverage is required for a Kidokinetics business?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
s Manual.
You must obtain the insurance coverage required under the Franchise Agreement, as follows: (i) comprehensive general liability insurance in the amount of at least $1,000,000 per occurrence and $2,000,000 in the aggregate, or in the event you lease commercial office space or storage space, such amount as required by your lease or state laws; (ii) umbrella excess liability coverage in an amount equal to $1,000,000 combined single limit coverage; (iii) automobile insurance in the amount of at least a combined single limit for bodily and property damage of $100,000, or greater if required by state law; and, if you have employees, statutory worker's compensation insurance in the limits required by state law; (iv) hired-non owned automobile insurance; (v) crime insurance for employee dishonesty in the amount of $5,000 combined single limit; (vi) sexual abuse and molestation coverage; (vii) accident
policy; and (viii) workers compensation with $1,000,000 limits or such additional limits as required by state law.
The insurance company must be authorized to do business in the state where your Kidokinetics Business is located and must be approved by us. It must also be rated "A" or better by A.M. Best & Company, Inc. We may periodically increase the amount of coverage required under these insurance policies and/or require different or additional insurance coverage at any time. All insurance policies must name us and any affiliates we designate as additional named insured parties. Your policy must provide that the insurer will not cancel or materially alter the policies without giving us at least 30 days' prior written notice.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 22–24)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, franchisees must obtain several types of insurance coverage. These include comprehensive general liability insurance with a minimum of $1,000,000 per occurrence and $2,000,000 in the aggregate, although the amount may increase if commercial space is leased, based on lease requirements or state laws. Additionally, franchisees need umbrella excess liability coverage of $1,000,000 combined single limit coverage and automobile insurance with at least a combined single limit of $100,000 for bodily and property damage, potentially higher depending on state law. If the franchisee has employees, statutory worker's compensation insurance is required, with limits set by state law.
Further insurance requirements include hired/non-owned automobile insurance, crime insurance for employee dishonesty with a $5,000 combined single limit, sexual abuse and molestation coverage, an accident policy, and workers' compensation with $1,000,000 limits or as required by state law. The insurance company must be authorized to operate in the state where the Kidokinetics business is located and must be approved by Kidokinetics, holding a rating of "A" or better from A.M. Best & Company, Inc.
Kidokinetics retains the right to increase the required coverage amounts or mandate different or additional insurance coverage at any time. All insurance policies must name Kidokinetics and any designated affiliates as additional insured parties. Moreover, the insurance policy must stipulate that the insurer will provide at least 30 days' prior written notice to Kidokinetics before canceling or materially altering the policies. This ensures Kidokinetics is protected and informed of any changes to the franchisee's insurance coverage.