What amount of umbrella liability insurance does Bath Tune Up recommend?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
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Insurance
You must obtain before you begin operating your Franchised Business and must maintain at all times the types of insurance and the minimum policy limits specified in the Manual. Currently we require:(i) general liability insurance in the amount of $1,000,000 per occurrence and $2,000,000 in the aggregate;(ii) general casualty insurance covering the full replacement cost of your vehicle; and (iii) auto liability for owned vehicles in the amount of $1,000,000 combined single limit and for hired and non-owned vehicles in the amount of $1,000,000 combined single limit. We also recommend umbrella liability insurance of $1,000,000. Your general liability policy must include employment practices coverage. You may be required to acquire additional insurance by the laws in your area. The insurance policies must protect you, us, and our respective past, present and future officers, directors, owners, managers, employees, consultants, attorneys, and agents against any loss, liability, personal injury, death, property damage or expense whatsoever arising or occurring upon or in connection with the condition, operation or use of the Franchised Business. We must be named as an additional insured under each policy that we require. Upon our request or as specified in the Manual, you must provide us with certificates of insurance or other proof of insurance in the form we request evidencing the required coverage. We may require additional types of coverage or increase t
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 22–24)
What This Means (2025 FDD)
According to Bath Tune Up's 2025 Franchise Disclosure Document, franchisees are required to maintain certain types of insurance with minimum policy limits. While specific amounts are mandated for general liability, casualty, and auto liability insurance, Bath Tune Up also recommends that franchisees obtain umbrella liability insurance.
The FDD specifies that Bath Tune Up recommends umbrella liability insurance of $1,000,000. This coverage is in addition to the required general liability insurance of $1,000,000 per occurrence and $2,000,000 in the aggregate, as well as auto liability coverage of $1,000,000 combined single limit for both owned, hired, and non-owned vehicles. The general liability policy must also include employment practices coverage.
It's important to note that these insurance policies must protect Bath Tune Up, its officers, directors, owners, managers, employees, consultants, attorneys, and agents. Bath Tune Up must also be named as an additional insured under each required policy. Franchisees are responsible for providing certificates of insurance or other proof of coverage upon request. Bath Tune Up retains the right to require additional types of coverage or increase the minimum coverage amounts with reasonable notice, so franchisees should be prepared for potential changes in insurance requirements.