What are the minimum comprehensive liability coverage requirements for a 1-800-GOT-JUNK? franchise?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
You must obtain and maintain at all times during the term of your franchise the types of insurance policies or coverage and the minimum policy limits or maximum deductibles of any policy as specified in the Operations Manual (“Coverages”), which are apt to change from time-to-time. You must also maintain at all times all insurance policies as required by the law in which your Franchised Business is operated. You must name us and our affiliates, agents, representatives, shareholders, directors, officers and employees as additional insureds on all policies of insurance, and include a waiver of subrogation against these additional insureds. The following are our current minimum requirements for Coverages:
Type Coverage Comprehensive Liability Not less than $2,000,000 per occurrence Business Interruption As required by Franchisor Vehicle Liability Not less than $1,000,000 or as required by Franchisor Employer’s Liability Insurance As required by Franchisor; not less than $1,000,000 Umbrella Coverage Not less than $2,000,000 Worker’s Compensation As required by state law Primary and Noncontributory Endorsement
Blanket Contractual Liability Endorsement
Other As required by Franchisor
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 21–23)
What This Means (2025 FDD)
According to 1-800-GOT-JUNK?'s 2025 Franchise Disclosure Document, franchisees must maintain comprehensive liability insurance coverage of not less than $2,000,000 per occurrence. This requirement is part of a broader set of insurance obligations detailed in the Operations Manual, which 1-800-GOT-JUNK? can modify over time. Franchisees must also adhere to all insurance policies mandated by the laws of the state in which they operate their franchise.
In addition to comprehensive liability coverage, 1-800-GOT-JUNK? requires franchisees to name the franchisor and its affiliates as additional insureds on all insurance policies. They must also include a waiver of subrogation against these additional insureds. Other insurance requirements include business interruption insurance, vehicle liability insurance (not less than $1,000,000 or as required by the franchisor), employer’s liability insurance (not less than $1,000,000 or as required by the franchisor), umbrella coverage (not less than $2,000,000), and worker’s compensation as required by state law.
The insurance requirements also include a primary and noncontributory endorsement and a blanket contractual liability endorsement. 1-800-GOT-JUNK? may also require other types of insurance as they deem necessary. It is important for prospective franchisees to carefully review the Operations Manual and consult with an insurance professional to ensure they fully understand and can meet these requirements, as failure to maintain adequate insurance coverage could result in a breach of the franchise agreement.