What is the minimum combined single limit for bodily and property damage required for automobile insurance for a Kidokinetics business if required by state law?
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 automobile insurance with at least a $100,000 combined single limit for bodily injury and property damage. However, if state law requires a higher limit, the franchisee must obtain the higher amount of coverage.
This means that a prospective Kidokinetics franchisee needs to investigate the specific automobile insurance requirements in their state. If the state mandates a combined single limit greater than $100,000, the franchisee's insurance policy must meet that higher threshold. This ensures that the Kidokinetics business is adequately protected against potential liabilities arising from automobile accidents.
It is important for prospective franchisees to factor in the cost of insurance, including potential increases to meet state-mandated minimums, when evaluating the overall investment required to start and operate a Kidokinetics franchise. Franchisees should consult with an insurance professional to determine the appropriate level of coverage for their specific circumstances, taking into account both the franchisor's requirements and state law.