What is the minimum amount of workers compensation with limits 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
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 are required to maintain specific insurance coverages. If a franchisee has employees, they must carry statutory worker's compensation insurance in the limits required by state law. Additionally, franchisees must have workers compensation with $1,000,000 limits or such additional limits as required by state law.
This means a Kidokinetics franchisee needs to ensure they have worker's compensation insurance that meets both the minimum requirements set by their state and the $1,000,000 limit specified by Kidokinetics. If state law mandates a higher limit than $1,000,000, the franchisee must comply with the higher state-mandated limit.
It is important for prospective Kidokinetics franchisees to consult with an insurance professional to determine the specific worker's compensation requirements in their state and to ensure they obtain the appropriate coverage to meet both state and franchisor requirements. Failing to maintain the required insurance coverage could result in a breach of the franchise agreement.