What is the minimum amount of comprehensive general liability insurance per occurrence that a Kidokinetics franchisee must maintain?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
nchise Operations Manual or otherwise in writing):
- 14.1.1. Liability. Franchise will be required to procure and maintain insurance in the amounts Franchisor prescribes. Presently, Franchisor's insurance requirements are 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) an accident policy; and (viii) workers compensation with $1,000,000 limits or such additional limits as required by state law.
- 14.2. Certificates.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, franchisees must maintain comprehensive general liability insurance. The minimum requirement is $1,000,000 per occurrence and $2,000,000 in the aggregate. However, if a franchisee leases commercial office or storage space, the required amount may be dictated by the lease terms or state laws, potentially exceeding the stated minimum.
In addition to the comprehensive general liability insurance, Kidokinetics franchisees must also secure umbrella excess liability coverage of $1,000,000 combined single limit coverage. Furthermore, franchisees need to have automobile insurance with at least a combined single limit of $100,000 for bodily and property damage, or a higher amount if mandated by state law. If the franchisee hires employees, they must also obtain statutory worker's compensation insurance within the limits required by state law.
Kidokinetics franchisees must also obtain hired/non-owned automobile insurance, crime insurance for employee dishonesty in the amount of $5,000 combined single limit, sexual abuse and molestation coverage, an accident policy, and workers compensation with $1,000,000 limits or such additional limits as required by state law. It is important to note that Kidokinetics retains the right to increase the minimum insurance requirements or add new types of insurance coverage as deemed necessary. Franchisees are responsible for providing proof of coverage to Kidokinetics within 30 days of any such changes.