What is the sexual abuse and molestation coverage requirement 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 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.
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 obtain sexual abuse and molestation coverage. However, the specific amount of coverage is not detailed in the provided excerpt.
While the FDD excerpt specifies other insurance coverage amounts, such as $1,000,000 per occurrence and $2,000,000 in the aggregate for comprehensive general liability insurance, it does not provide a specific dollar amount for the sexual abuse and molestation coverage. The insurance company providing the coverage must be authorized to do business in the state where the Kidokinetics Business is located and must be approved by Kidokinetics. The insurer must also have a rating of "A" or better by A.M. Best & Company, Inc.
Kidokinetics retains the right to increase the amount of coverage required or to mandate different or additional insurance coverage at any time. All insurance policies must name Kidokinetics and any designated affiliates as additional insured parties. Furthermore, the insurance policy must stipulate that the insurer will provide at least 30 days' prior written notice before canceling or materially altering the policies.
Prospective Kidokinetics franchisees should clarify the required amount of sexual abuse and molestation coverage with the franchisor to ensure they meet all insurance obligations and to understand the potential costs associated with this coverage.