What are the required general liability insurance limits per occurrence for a Mr. Sandless franchise?
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.
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 with specific limits. The general liability insurance must include personal and advertising liability coverage. The minimum required limit is $500,000 per occurrence.
In addition to the per occurrence limit, Mr. Sandless requires an aggregate limit of $1,000,000, with a per-project aggregate. This per-project aggregate provides a separate limit of liability for each active project the franchisee undertakes. The policy must also include contractual liability coverage, protecting against claims arising from both direct and vicarious liability.
Mr. Sandless also mandates that they and their officers, directors, employees, and agents be named as additional insureds on the insurance policy. This coverage must be primary and non-contributory, and the insurance policies should waive all rights of subrogation against Mr. Sandless. Franchisees must provide a Certificate of Insurance before opening their business and upon each renewal. Failure to meet these insurance requirements can result in termination of the franchise agreement.