What are the minimum automobile liability insurance coverage limits required for a Monicals Pizza franchise?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
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- 15.1.5 Automobile liability insurance including liability coverage for autos owned, hired or borrowed, if applicable, by Franchisee, and liability coverage for autos owned by others ("nonowned auto" coverage) with limits of not less than ONE MILLION DOLLARS ($1,000,000.00) per occurrence for bodily injury and property damage combined;
- 15.1.6 Umbrella excess liability insurance with a minimum liability coverage of TWO MILLION DOLLARS ($2,000,000.00) (umbrella excess liability must provide coverage in excess of commercial general liability, liquor liability, automobile liability and employers liability limits);
- 15.1.7 Business interruption insurance in amounts and with terms acceptable to Franchisor;
- 15.1.8 Cyber insurance policy with a minimum liability coverage of $1,000,000:
- 15.1.9 Restaurant Recovery Insurance (or equivalent) due to Food Borne Illness with a minimum liability coverage of $1,000,000: and
15.1.10 Such insurance as necessary to provide coverage under the indemnity provisions set forth in Section 21.3.
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
According to Monicals Pizza's 2025 Franchise Disclosure Document, franchisees are required to maintain automobile liability insurance with specific coverage limits. This insurance must include coverage for vehicles owned, hired, or borrowed by the franchisee, as well as non-owned auto coverage for vehicles owned by others. The minimum required limit is ONE MILLION DOLLARS ($1,000,000.00) per occurrence for bodily injury and property damage combined.
In addition to the automobile liability insurance, Monicals Pizza franchisees must also carry umbrella excess liability insurance with a minimum coverage of TWO MILLION DOLLARS ($2,000,000.00). This umbrella policy provides additional coverage above the limits of the commercial general liability, liquor liability, automobile liability, and employer's liability insurance.
Monicals Pizza also mandates that franchisees ensure their employees who use their own vehicles for off-site deliveries maintain their own insurance coverage that meets at least the minimum legal requirements. Franchisees must keep proof of this insurance and provide it to Monicals Pizza upon request. Monicals Pizza retains the right to increase the minimum liability protection requirements annually to account for inflation, changes in liability standards, and potential increases in damage awards.