What is the estimated range for insurance costs for a 1-800-GOT-JUNK? franchise?

According to 1-800-GOT-JUNK?'s 2025 Franchise Disclosure Document, the estimated initial investment for insurance ranges from $10,000 to $30,000. This figure encompasses the initial insurance expenses a franchisee will incur. However, 1-800-GOT-JUNK? emphasizes that franchisees must continually maintain insurance coverage in the amounts specified by 1-800-GOT-JUNK?, and also maintain all insurance policies required by the law in the state where the franchise operates.

The 1-800-GOT-JUNK? FDD specifies minimum coverage requirements. These include Comprehensive Liability of not less than $2,000,000 per occurrence, Vehicle Liability of not less than $1,000,000 (or as required by 1-800-GOT-JUNK?), and Umbrella Coverage of not less than $2,000,000. Additionally, franchisees must carry Business Interruption insurance, Employer’s Liability Insurance (not less than $1,000,000), and Worker’s Compensation as required by state law, as well as maintain Primary and Noncontributory and Blanket Contractual Liability Endorsements. 1-800-GOT-JUNK? also requires other insurance types as they deem necessary.

Furthermore, 1-800-GOT-JUNK? mandates that the franchisor and its affiliates, agents, representatives, shareholders, directors, officers, and employees be named as additional insureds on all insurance policies. The policies must also include a waiver of subrogation against these additional insureds. Prospective franchisees should carefully review these insurance requirements with a qualified insurance broker to understand the full scope of coverage needed and to obtain accurate quotes, as these costs can vary based on location, risk factors, and coverage limits.