What is the minimum amount of crime insurance for employee dishonesty 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
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 crime insurance for employee dishonesty with a minimum coverage of $5,000 combined single limit. This insurance protects the Kidokinetics business from financial losses due to dishonest acts by employees.
In addition to crime insurance, Kidokinetics franchisees are required to have several other types of insurance coverage, including comprehensive general liability insurance, umbrella excess liability coverage, automobile insurance, and worker's compensation insurance. The specific amounts and terms of these policies are detailed in the Franchise Agreement, and Kidokinetics retains the right to increase the required coverage amounts or mandate additional insurance types at any time.
The insurance company providing the coverage must be authorized to operate in the state where the Kidokinetics business is located and must have a rating of "A" or better from A.M. Best & Company, Inc. Furthermore, Kidokinetics and any designated affiliates must be named as additional insured parties on all insurance policies. The insurance policies must also stipulate that the insurer will provide Kidokinetics with at least 30 days' prior written notice before canceling or materially altering the policies.
It is important for prospective Kidokinetics franchisees to carefully review the insurance requirements outlined in the Franchise Agreement and to obtain the necessary coverage to protect their business from potential liabilities and losses. Franchisees should also ensure that they maintain adequate insurance coverage throughout the term of the franchise agreement, as failure to do so could result in a breach of contract.