Is workers' compensation insurance required for a 360 Painting franchise, and if so, what are the requirements?
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 are required to obtain workers' compensation insurance. This insurance must comply with the statutory requirements of the state in which the 360 Painting business is located. Additionally, franchisees must secure employer liability coverage with a minimum limit of $500,000.
The cost of insurance for a 360 Painting franchise can be influenced by several factors. These include the value and age of the equipment used, the number of employees, the franchisee's safety record, any history of workers' compensation claims, the record of liability claims, and the driving record. These factors are typical considerations for insurance providers across various industries, as they directly relate to the risk associated with insuring the business.
The 360 Painting FDD specifies that franchisees may purchase the required insurance from a vendor of their choice. This flexibility allows franchisees to shop around for the best rates and coverage options that suit their specific needs and circumstances. It is important for prospective franchisees to carefully consider these insurance requirements and factor in the potential costs when evaluating the overall investment in a 360 Painting franchise.