What are the minimum coverage requirements for Kitchen Solvers workers' compensation & employer's liability insurance per employee?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
otorists, owned, hired, and non-owned autos;
- (c) Workers' Compensation & employer's liability insurance with minimum coverage of $1,000,000 per employee, $1,000,000 per accident, and a minimum policy limit of $1,000,000, or in such larger amounts as may be required by the statute or rule in the jurisdiction in which your business is located;
- (d) Umbrella Insurance with $1,000,000 per occurrence and $1,000,000 aggregate, providing excess coverage over General Liability, Auto Liability and Employers Liability; and
- (e) any other insurance, in such amounts as may be required by statute or rule in the jurisdiction in which your business is located.
We may reasonably increase the minimum liability protection requirements annually and require different or additional kinds of insurance to reflect inflation, changes in standards of liability, higher damage awards in public or product liability litigation or other relevant changes in circumstances. Premiums are payable in amounts and at times as required by your insurers. All insurance policies must be from an A-VII or higher AM Best-rated carrier, name us and other related entities or persons, as designated by us, as additional insured parties, provide a waiver of subrogation in favor of us and our designees, and must provide that we will receive 30 days' prior written notice of amendment, termination, expiration or cancellation of any policy. You must
submit to us each year a copy of the certificate, endorsement or other evidence of the issuance, renewal or extension of each insurance policy. If you fail to obtain insurance coverage, we may, but are not required to, obtain insurance coverage on your behalf and you must reim
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 21–24)
What This Means (2025 FDD)
According to Kitchen Solvers' 2025 Franchise Disclosure Document, franchisees are required to maintain workers' compensation and employer's liability insurance with specific minimum coverage amounts. The minimum coverage required is $1,000,000 per employee, $1,000,000 per accident, and a minimum policy limit of $1,000,000. However, the FDD also states that franchisees must carry insurance in such larger amounts as may be required by the statute or rule in the jurisdiction in which their business is located.
This means that a Kitchen Solvers franchisee must ensure their insurance coverage meets both the franchisor's minimum requirements and any higher requirements mandated by state or local laws. It is the franchisee's responsibility to understand and comply with the insurance regulations in their specific area. Failure to maintain adequate insurance coverage could result in a breach of the Franchise Agreement.
Kitchen Solvers also retains the right to reasonably increase the minimum liability protection requirements annually to reflect inflation, changes in standards of liability, higher damage awards in public or product liability litigation or other relevant changes in circumstances. All insurance policies must be from an A-VII or higher AM Best-rated carrier, name Kitchen Solvers and other related entities or persons, as designated by Kitchen Solvers, as additional insured parties, provide a waiver of subrogation, and must provide that Kitchen Solvers will receive 30 days' prior written notice of amendment, termination, expiration or cancellation of any policy. The franchisee must submit to Kitchen Solvers each year a copy of the certificate, endorsement or other evidence of the issuance, renewal or extension of each insurance policy. If the franchisee fails to obtain insurance coverage, Kitchen Solvers may obtain insurance coverage on the franchisee's behalf, and the franchisee must reimburse Kitchen Solvers for all costs and expenses incurred.