What is the minimum amount of comprehensive general liability insurance required for a Kidokinetics business per occurrence?
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 maintain comprehensive general liability insurance. The minimum required coverage 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 higher, depending on the lease terms or state laws.
In addition to general liability coverage, Kidokinetics franchisees are also required to have umbrella excess liability coverage of $1,000,000 combined single limit coverage. They must also maintain automobile insurance with at least a combined single limit of $100,000 for bodily injury and property damage, or a greater amount if required by state law. If the franchisee has employees, they must also carry statutory worker's compensation insurance in the limits required by state law.
Kidokinetics also mandates that franchisees 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. The insurance company providing the coverage must be authorized to do business in the state where the Kidokinetics business is located and must have an "A" rating or better from A.M. Best & Company, Inc. Kidokinetics and any designated affiliates must be named as additional insured parties on all policies.
Kidokinetics retains the right to increase the required coverage amounts or mandate different or additional insurance coverage at any time. Furthermore, the insurance policy must stipulate that the insurer will provide Kidokinetics with at least 30 days' prior written notice before canceling or materially altering the policy. These stipulations ensure that Kidokinetics franchisees maintain adequate insurance coverage to protect both their business and the Kidokinetics brand from potential liabilities.