Can a 360 Painting franchisee purchase insurance from a vendor of their choice?
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, franchisees can purchase required insurance from a vendor of their choice. 360 Painting mandates specific insurance policies and minimum coverage amounts, including comprehensive general liability insurance ($1,000,000 per occurrence, $2,000,000 general aggregate liability), auto insurance as required by state law, property and casualty insurance, workers' compensation insurance, and employer liability coverage ($500,000 minimum limit).
The cost of insurance for a 360 Painting franchise can vary based on factors such as equipment value and age, number of employees, safety record, workers' compensation claims history, liability claims record, and driving record. These are standard considerations that insurance companies use to determine premiums, so franchisees should be prepared to provide accurate information to obtain the best rates.
While 360 Painting allows franchisees to choose their insurance vendor, it's important to ensure that the chosen vendor provides the required coverage levels and types to comply with the franchise agreement. Failing to maintain adequate insurance coverage could result in a breach of contract and potential penalties. Franchisees should carefully review the insurance requirements outlined in the Franchise Disclosure Document and consult with insurance professionals to secure appropriate coverage.