What is the recommended umbrella coverage amount for a 7 Brew franchise?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
licy or policies.
You currently must have the following minimum insurance coverage: (i) commercial general liability insurance (including product, contractual, and owned and non-owned vehicle liability coverages) in minimum amounts of $2,000,000, aggregate single limit coverage; (ii) "All Risk" property damage insurance; (iii) plate glass insurance and boiler insurance (if applicable);
(iv) employer's liability, workers' compensation, and such statutory insurance as may be required in the state in which the Store is located; and (v) employment practices liability insurance with a limit of not less than $1,000,000 per occurrence and $1,000,000 aggregate. We recommend a $5 million umbrella coverage and cyber-insurance up to $1,000,000. You also must obtain and maintain all other insurance required under app
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 27–32)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, 7 Brew recommends that franchisees obtain $5 million in umbrella coverage. In addition to this recommendation, 7 Brew also suggests that franchisees carry cyber-insurance up to $1,000,000.
Beyond the umbrella and cyber-insurance recommendations, 7 Brew mandates several minimum insurance coverage requirements. These include commercial general liability insurance with $2,000,000 in aggregate single limit coverage, "All Risk" property damage insurance, and employment practices liability insurance with limits of not less than $1,000,000 per occurrence and $1,000,000 aggregate. Franchisees must also carry employer's liability, workers' compensation, and any other statutory insurance required by the state in which the 7 Brew store is located.
It is important to note that 7 Brew retains the right to increase the required coverage amounts or require different or additional insurance coverage at any time. This could be due to factors such as inflation, the identification of new risks, changes in laws or liability standards, or higher damage awards. Franchisees are responsible for maintaining this insurance coverage at their own expense, using carriers licensed in the store's state and rated A-, VII or higher by A.M. Best and Company, Inc. or satisfying 7 Brew's other criteria.