What kind of property must be covered by the property insurance for a Management Recruiters franchise?
Management_Recruiters Franchise · 2024 FDDAnswer from 2024 FDD Document
by an underwriting review. You are required to have the following insurance coverage:
- COMMERCIAL GENERAL LIABILITY including bodily injury and property damage liability for premises and operations, contractual liability, personal injury liability and, if applicable, stop gap coverage in the amount of $1,000,000.00 each occurrence and $2,000,000.00 annual aggregate;
- BUSINESS AUTOMOBILE LIABILITY if Franchisee is a corporate entity that owns a vehicle: including bodily injury and property damage liability for owned, leased, non-owned, and hired autos used in the Franchise Business in the amount of $1,000,000.00 each accident;
- WORKERS' COMPENSATION with the statutory minimum limits set by applicable Law, unless the Laws of Franchisee's state do not require this coverage for sole proprietors;
- EMPLOYER'S LIABILITY in the amount of $500,000.00 or statutory minimum limits, whichever is greater;
- PROPERTY including "all-risk" coverage on all real and personal property owned, leased, or rented by Franchisee as well as business income and extra expense coverage. This insurance
shall be written for the replacement cost of Franchisee's real and personal property and on an actual loss sustained basis for the busine
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 26–29)
What This Means (2024 FDD)
According to Management Recruiters's 2024 Franchise Disclosure Document, franchisees must maintain property insurance that includes "all-risk" coverage for all real and personal property they own, lease, or rent. This insurance must also cover business income and extra expenses.
The property insurance should be written to cover the replacement cost of the franchisee's real and personal property. For business income and extra expenses, the insurance should be written on an actual loss sustained basis.
Management Recruiters requires franchisees to maintain several types of insurance coverage, including commercial general liability, business automobile liability (if applicable), workers' compensation, employer's liability, errors and omissions, employment practices liability, commercial blanket employee dishonesty bond, license bond (if required), and unemployment compensation. The specific amounts and terms of these policies are detailed in the FDD.