What is the minimum amount of Commercial General Liability insurance coverage required for a Management Recruiters franchise?
Management_Recruiters Franchise · 2024 FDDAnswer from 2024 FDD Document
t that the contract with a national vendor requires Franchisor to make full payment of fees directly to the national
vendor, Franchisee agrees to make payment of its pro rata share, based on the number of participating Franchisees, to Franchisor immediately on demand.
11. INSURANCE
- 11.1. Franchisee Insurance. Franchisee shall acquire and maintain, throughout the Term of this Agreement, and at its own expense, insurance coverage of the type and amounts set forth in this Section 11.
- 11.2. Coverage Requirements. Insurance coverage must comply with the requirements of the Brand Standards Materials, which Franchisor, in its sole discretion, may a
Source: Item 23 — RECEIPTS (FDD pages 67–327)
What This Means (2024 FDD)
According to Management Recruiters' 2024 Franchise Disclosure Document, franchisees must maintain Commercial General Liability insurance coverage. This coverage must include bodily injury and property damage liability for premises and operations, contractual liability, and personal injury liability. If applicable, it should also include stop gap coverage. The minimum required amount is $1,000,000.00 for each occurrence and $2,000,000.00 in annual aggregate.
In addition to Commercial General Liability insurance, Management Recruiters franchisees are required to maintain other types of insurance coverage throughout the term of their agreement. These include Business Automobile Liability ($1,000,000.00 per accident), Workers' Compensation (statutory minimum), Employer's Liability ($500,000.00 or statutory minimum), Property insurance (replacement cost), Errors and Omissions ($1,000,000.00 per claim and annual aggregate), Employment Practices Liability ($1,000,000.00 per claim and annual aggregate), and Commercial Blanket Employee Dishonesty Bond ($100,000.00 or 10% of ERISA plan assets).
The insurance policies must name Management Recruiters as an additional insured, except for policies like workers' compensation where only an employer can be named. The policies must not limit or reduce coverage for the franchisee below the aggregate limits provided in the policy, waive any rights of recovery the insurance companies may have against Management Recruiters, and be primary to any other insurance purchased by Management Recruiters. The deductible or self-insured retention must be $10,000.00 or less. Franchisees must provide a certificate of insurance to Management Recruiters before starting New Office Training and annually within ten days of request.