What is the minimum required bailee legal liability coverage for a 1 800 Packouts franchisee?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
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Insurance. You must obtain and maintain in force insurance coverage necessary to comply with all laws and as is customary for similar businesses in the state or jurisdiction in which the Franchised Business operates or as we may reasonably prescribe from time to time. We currently require you to maintain the following insurance coverage: (i) commercial general liability insurance ($1 million per occurrence, $2 million general aggregate limit, and $2 million products-completed operations limit, (ii) contractor's environmental liability ($1 million per occurrence and $2 million aggregate limit (aggregate may be shared with CGL policy)), (iii) property insurance (100% of replacement value of Facility and contents), (iv) bailee legal liability coverage ($1 million limit), (v) vehicle liability insurance ($1 million coverage, including hired and non-company owned auto coverage), (vi) workers' compensation coverage, (vii) cyber liability coverage ($1 million limit), (viii) employment practices liability coverage ($1 million limit), and (ix) excess liability coverage (over and above CGL, vehicle liability and employer liability) of $1 million. The insurance coverage must be maintained under one or more policies of insurance of the types and containing such terms and conditions and minimum liability protection in such amounts, as we specify and as are is
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 27–29)
What This Means (2025 FDD)
According to 1 800 Packouts's 2025 Franchise Disclosure Document, franchisees must maintain bailee legal liability coverage with a minimum limit of $1 million. This insurance protects against loss or damage to customers' property while it is in the franchisee's care, custody, or control. This coverage is one component of a broader set of insurance requirements that 1 800 Packouts mandates for its franchisees.
In addition to bailee legal liability, 1 800 Packouts requires franchisees to maintain other insurance policies, including commercial general liability insurance, contractor's environmental liability, property insurance, vehicle liability insurance, workers' compensation coverage, cyber liability coverage, employment practices liability coverage, and excess liability coverage. The franchisor specifies minimum coverage amounts and terms for each of these policies.
1 800 Packouts retains the right to modify the required insurance coverage amounts and types at any time to reflect changes in circumstances such as inflation, new risks, or changes in the law. Franchisees are responsible for ensuring that all insurance policies name 1 800 Packouts as an additional insured and provide the franchisor with advance notice of any material changes or cancellations. Franchisees must also provide 1 800 Packouts with copies of insurance certificates as proof of coverage.