What are the minimum General Liability insurance limits required for a Mr. Sandless franchise, including Personal and Advertising Liability?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
overages. Our current minimum insurance requirements include:
- o General Liability including Personal and Advertising Liability is required with limits of $500,000 per occurrence and $1,000,000 aggregate limit, with a per project aggregate. The policy should include contractual liability covering claims from both direct and vicarious liability.
- o Per Project Aggregate. This will provide you with a separate aggregate limit of liability for each active project.
- o On-Site Limited Warranty Care, Custody, Control Coverage. This insurance is intended to provide you with coverage for property damage to real or personal property of others while in the care, custody, or control of the franchisee. Also provides limited coverage for your work.
- o Property coverage. Any owned or leased property, including equipment used at various jobsites, should be covered by a comprehensive property insurance policy.
- o Auto Liability is required with limits of $500,000 Combined Single Limit on all owned, hired and non-owned vehicles. Autos should be titled and registered in your company name.
- o Workers Compensation/Employers Liability with state statutory limits.
- o Employer Practices Liability Insurance that names Franchisor as co-defendant in the amount of One Million Dollars ($1,000,000) for employment wrongful acts, including third party liability for harassment and discrimination of non-employees.
In addition to the minimum insurance coverages described above, we also have the following minimum requirements:
- You must provide us with a Certificate of Insurance before your Business opens and upon each renewal naming us and our respective officers, directors, employees and agents as an additional named insured.
- We should be named as an additional insured for ongoing operations as well as completed operations. This is accomplished by ISO forms CG2010 (7/04) and CG2037 (7/04) or equivalent.
- We must be named as an additional insured on a primary and non-contributory basis.
- Your insurance policies should waive all rights of subrogation against us.
- Failure to comply with our insurance
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 15–18)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, franchisees are required to maintain General Liability insurance, including Personal and Advertising Liability, with specific coverage limits. The minimum required coverage is $500,000 per occurrence and $1,000,000 aggregate limit, with a per project aggregate. This per project aggregate provides a separate limit of liability for each active project.
In addition to General Liability coverage, Mr. Sandless franchisees must also secure On-Site Limited Warranty Care, Custody, Control Coverage, which protects against property damage to real or personal property of others while under the franchisee's care, custody, or control, and provides limited coverage for the franchisee's work. Furthermore, franchisees need to have Property coverage for any owned or leased property, including equipment used at various jobsites, covered by a comprehensive property insurance policy.
Mr. Sandless also mandates that the franchisor and its officers, directors, employees, and agents be named as additional insured on the insurance policies. This inclusion must cover ongoing operations as well as completed operations, achieved through ISO forms CG2010 (7/04) and CG2037 (7/04) or equivalent. The insurance policies should also waive all rights of subrogation against the franchisor and be primary and non-contributory. Failure to meet these insurance requirements can result in termination of the franchise agreement.
Prospective Mr. Sandless franchisees should carefully review these insurance requirements with a qualified insurance professional to ensure they obtain adequate coverage and comply with all of the franchisor's mandates. Understanding these requirements is crucial for protecting the franchisee's business and maintaining a good standing with Mr. Sandless.