What are the minimum employer's liability insurance 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 employer's liability insurance. The minimum requirement is dictated by the franchisor but must not be less than $1,000,000. The specific amount may change over time, as the insurance requirements are detailed in the Operations Manual, which is subject to updates.
In addition to employer's liability insurance, 1-800-GOT-JUNK? franchisees must also maintain other types of insurance, including comprehensive liability (not less than $2,000,000 per occurrence), business interruption (as required by the franchisor), vehicle liability (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). Franchisees must also secure a Primary and Noncontributory Endorsement and a Blanket Contractual Liability Endorsement.
1-800-GOT-JUNK? requires that the company and its affiliates, agents, representatives, shareholders, directors, officers, and employees are named as additional insureds on all insurance policies. Furthermore, a waiver of subrogation against these additional insureds must be included. This protects 1-800-GOT-JUNK? from potential liabilities related to the franchisee's operations.
Prospective franchisees should carefully review the Operations Manual and consult with an insurance professional to ensure they understand and can meet all insurance requirements. It is also important to stay informed of any changes to these requirements throughout the term of the franchise agreement.