What are the minimum umbrella 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
We require you to secure space from which to operate your Franchised Business. We estimate that you will need a minimum of 300 square feet.
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 certain insurance coverages throughout the term of their franchise agreement. These requirements are subject to change over time, as specified in the Operations Manual. Additionally, franchisees must adhere to all insurance policies mandated by the laws of the state in which they operate their 1-800-GOT-JUNK? business. The company and its affiliates must be listed as additional insureds on all insurance policies, and there must be a waiver of subrogation against these additional insureds.
Specifically, 1-800-GOT-JUNK? requires franchisees to maintain umbrella coverage of not less than $2,000,000. In addition to umbrella coverage, franchisees must also maintain comprehensive liability coverage of not less than $2,000,000 per occurrence, vehicle liability coverage of not less than $1,000,000 (or as required by the franchisor), and employer’s liability insurance of not less than $1,000,000 (or as required by the franchisor). Worker’s compensation insurance is also required, as mandated by state law.
It is important for prospective 1-800-GOT-JUNK? franchisees to understand these insurance requirements, as they represent a significant ongoing cost of doing business. Franchisees should consult with an insurance professional to ensure they obtain adequate coverage to meet both the franchisor's requirements and their own risk management needs. The franchisee must also secure space from which to operate their Franchised Business, with a minimum of 300 square feet.