What are the minimum liability limits for commercial general liability insurance required for a Monicals Pizza franchise?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
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- 15.1.3 Commercial general liability insurance against claims for bodily and personal injury, death and property damage caused by, or occurring in conjunction with, the operation of the Franchised Restaurant, including premises and operations, contractual liability, products completed operations and personal and advertising injury, with minimum limits of liability for each type of insurance of ONE MILLION DOLLARS ($1,000,000.00) per occurrence and TWO MILLION DOLLARS ($2,000,000.00) general aggregate or higher if required by any landlord or lease agreement or by state law
- 15.1.4 Liquor liability/dram shop policy with a minimum liability coverage of ONE MILLION DOLLARS ($1,000,000.00) per occurrence and TWO MILLION DOLLARS ($2,000,000.00) in the aggregate or, if higher, the statutory minimum limit required by applicable state law;
- 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);
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
According to Monicals Pizza's 2025 Franchise Disclosure Document, franchisees must maintain commercial general liability insurance with specific minimum limits. This insurance covers claims for bodily and personal injury, death, and property damage related to the operation of the franchised restaurant.
The minimum liability limits required are $1,000,000 per occurrence and $2,000,000 in general aggregate. However, these limits may be higher if required by any landlord, lease agreement, or state law.
Monicals Pizza also requires franchisees to name the franchisor as an additional insured on the liability policy, including any applicable umbrella/excess policies. Additionally, Monicals Pizza has the right to reasonably increase the minimum liability protection requirement annually and require different or additional insurance coverage(s) to reflect inflation, changes in standards of liability, future damage awards or other relevant changes in circumstances.