What is the required amount of Commercial General Liability insurance coverage for a Management Recruiters franchise?

According to Management Recruiters's 2024 Franchise Disclosure Document, franchisees are required to maintain Commercial General Liability insurance. This insurance must include coverage for bodily injury and property damage liability for premises and operations, contractual liability, personal injury liability, and stop gap coverage if applicable. The minimum required coverage amount is $1,000,000.00 per occurrence and $2,000,000.00 annual aggregate.

In addition to Commercial General Liability insurance, Management Recruiters franchisees must also maintain other types of insurance, including Business Automobile Liability (if the franchisee is a corporate entity that owns a vehicle), Workers' Compensation (unless state law exempts sole proprietors), Employer's Liability, and Property insurance. They must also carry Errors and Omissions insurance, Employment Practices Liability insurance, and a Commercial Blanket Employee Dishonesty Bond under certain conditions.

The FDD also notes that Management Recruiters may require additional types and limits of insurance from time to time, based on changes in their requirements or applicable law. Franchisees should factor in the cost of these insurance policies when considering the overall investment and operating expenses of a Management Recruiters franchise. The premiums for business insurance can vary based on revenue, credit rating, and payment schedule.