What is the minimum umbrella excess liability coverage amount required for a Kidokinetics franchise?
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 umbrella excess liability coverage of at least $1,000,000 combined single limit coverage. This insurance coverage is one component of the overall insurance requirements Kidokinetics mandates to protect both the franchisee and the franchisor.
Kidokinetics requires franchisees to secure this insurance prior to commencing operations and maintain it throughout the term of the agreement. The insurance policies must be rated A or better by A.M. Best Company. Furthermore, Kidokinetics, its officers, directors, partners, owners, employees, and affiliates must be named as additional insureds on these policies.
It is important to note that Kidokinetics retains the right to increase the required minimum coverage amounts or add additional types of insurance as deemed necessary. Franchisees are obligated to provide proof of coverage meeting these updated requirements within 30 days of notification. Franchisees must also provide Kidokinetics with certificates of insurance at least 30 days prior to the opening of the Kidokinetics Business and policy renewal date.