Does the 360 Painting franchise agreement specify the amount of insurance coverage the franchisee must obtain?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
ting from or in connection with the operation of the Business and for all claims or demands for damages to property or for injury, illness or death of persons directly or indirectly resulting therefrom.
- (v) Franchisee shall not permit any third party sub-contractor to perform any work or offer any services on behalf of Franchisee in respect of the Business unless such sub-contractor maintains insurance coverage in such amounts and types as Franchisee is required to maintain under the provisions of this Section, and such insurance names Franchisor as an additional insured. Franchisee shall maintain evidence of such insurance by its subcontractors and provide such proof of insurance as Franchisor may require in its sole discretion from time to time.
- (vi) At a minimum, Franchisee must obtain the following insurance policies and minimum coverage
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 56)
What This Means (2025 FDD)
According to 360 Painting's 2025 Franchise Disclosure Document, the franchise agreement does specify the minimum amounts and types of insurance coverage a franchisee must maintain. 360 Painting franchisees are required to obtain and maintain several insurance policies, with specific minimum coverage amounts. These include comprehensive general liability insurance with a minimum per occurrence coverage of $1,000,000 and general aggregate liability coverage of $2,000,000.
In addition to general liability coverage, franchisees must also maintain auto insurance for their vehicles in an amount required by state law, as well as property and casualty insurance. Furthermore, they need to have workers' compensation insurance that complies with the statutory requirements of the state in which the business is located, along with employer liability coverage with a minimum limit of $500,000. The FDD notes that franchisees may need to purchase additional coverage, either in dollar limits or types, if required by their state's laws.
360 Painting also requires that any third-party subcontractors engaged by the franchisee maintain insurance coverage in the same amounts and types as the franchisee is required to maintain, and that the insurance names 360 Painting as an additional insured. Franchisees must maintain evidence of this insurance and provide proof of insurance as 360 Painting may require. Franchisees must provide certificates of insurance to 360 Painting evidencing the proper coverage with limits not less than those required at least 30 days prior to the expiration of any such policy. These certificates must contain endorsements requiring the insurance company to give 360 Painting at least 30 days written notice in the event of material alteration to termination, non-renewal, or cancellation of the coverages evidenced by such certificates and notice of any claim filed under such policy within 30 days after the filing of such claim.