What is the minimum required cyber 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 are required to maintain cyber liability coverage with a minimum limit of $1 million. This coverage is part of a broader set of insurance requirements that 1 800 Packouts mandates for its franchisees.
In addition to cyber liability coverage, 1 800 Packouts requires franchisees to have commercial general liability insurance ($1 million per occurrence, $2 million general aggregate limit, and $2 million products-completed operations limit), contractor's environmental liability ($1 million per occurrence and $2 million aggregate limit), property insurance (100% of replacement value), bailee legal liability coverage ($1 million limit), vehicle liability insurance ($1 million coverage), workers' compensation coverage, employment practices liability coverage ($1 million limit), and excess liability coverage of $1 million.
1 800 Packouts can modify these insurance requirements at any time to reflect changes in circumstances such as inflation, new risks, or changes in the law. Franchisees must ensure that all insurance policies name 1 800 Packouts as an additional insured and provide a waiver of subrogation rights against 1 800 Packouts. Franchisees must also provide 1 800 Packouts with copies of insurance certificates within 30 days of signing the Franchise Agreement and annually thereafter. These insurance policies must be issued by insurance carriers rated not less than "A-" by A.M. Best Company.