What is the minimum general aggregate liability coverage required 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, franchisees must maintain comprehensive general liability insurance with specific minimum coverage amounts. This insurance protects against claims related to bodily injury, personal injury, death, and property damage that may occur during the operation of the 360 Painting business.
Specifically, 360 Painting requires a minimum per occurrence coverage of $1,000,000 and a general aggregate liability coverage of $2,000,000. In addition to this general liability coverage, franchisees are also required to maintain auto insurance, property and casualty insurance, workers' compensation insurance, and employer liability coverage with a minimum limit of $500,000. The cost of insurance can vary based on factors such as the value and age of equipment, the number of employees, safety records, and claims history.
Franchisees have the flexibility to purchase the required insurance from a vendor of their choice, allowing them to shop for the best rates and coverage options. However, it is important to note that state laws may require additional coverage, either in dollar limits or types, so franchisees must ensure they meet all applicable legal requirements. This comprehensive insurance requirement is typical in the franchise industry to protect both the franchisee and the franchisor from potential liabilities.