What factors might affect the cost of insurance for a 360 Painting franchise?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
nd specifications from any vendor you choose.
You must obtain the following insurance policies and minimum coverage amounts: (1) comprehensive general liability insurance against claims for bodily and personal injury, death and property damage caused by or occurring in conjunction with the operation of the Business, or your conduct of business with a minimum per occurrence coverage of $1,000,000 and general aggregate liability coverage of $2,000,000; (2) auto insurance for the Vehicles in an amount required by state law; (3) property and casualty insurance; (4) workers' compensation insurance that complies with the statutory requirements of the state in which the Business is located; and (5) employer liability coverage with a minimum limit of $500,000. You may have to purchase additional coverage, either in dollar limits or types, if required by your state's laws. Factors that may affect your cost of insurance include the value and age of your equipment, number of employees, your safety record and record of workers' compensation claims, record of liability claims and driving record. You may purchas
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 23–26)
What This Means (2025 FDD)
According to 360 Painting's 2025 Franchise Disclosure Document, several factors can influence the cost of insurance for franchisees. These factors include the value and age of the equipment used in the business, the number of employees a franchisee has, and the franchisee's safety record. Additionally, the franchisee's record of workers' compensation claims, liability claims, and driving record can also impact insurance costs.
360 Painting requires franchisees to maintain specific insurance policies with minimum coverage amounts. These include comprehensive general liability insurance ($1,000,000 per occurrence, $2,000,000 general aggregate), auto insurance as required by state law, property and casualty insurance, workers' compensation insurance compliant with state statutes, and employer liability coverage ($500,000 minimum limit). Franchisees may need to purchase additional coverage based on their state's laws.
Prospective 360 Painting franchisees should be aware that maintaining a clean safety record and managing risks effectively can help control insurance expenses. The number of employees directly correlates with insurance costs, particularly workers' compensation. Furthermore, the age and value of equipment will factor into property and casualty insurance premiums. Franchisees have the freedom to choose their insurance vendor, allowing them to shop for the best rates and coverage options.
It is important for potential franchisees to consult with insurance professionals to assess their specific needs and understand how these factors may affect their insurance premiums. By carefully managing these elements, franchisees can potentially mitigate insurance costs and maintain adequate coverage for their 360 Painting business.