What are the minimum requirements for insurance coverage for a Bee Organized franchise?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Insurance You must obtain the insurance coverage that we require from time to time as presently disclosed in the Manuals and as we may modify. All insurance policies required under your Franchise Agreement and as set forth in the Franchise Agreement must be written by a responsible carrier, reasonably acceptable to us, and all insurance (excluding workers' compensation) must name us, our officers, directors, shareholders, partners, agents, representatives and independent contractors as additional insureds. The insurance policies must include a provision that the insurance carrier must provide us with no less than 30 days' prior written notice in the event of a material alteration to, or cancellation of, any insurance policy. A certificate of insurance must be furnished by you to use at the earlier of 90 days after the Effective Date of the Franchise Agreement or prior to the commencement of our initial training program. Insurance coverage must be at least as comprehensive as the minimum requirements set forth below and in the Franchise Agreement (Franchise Agreement, Article 8). You must consult your carrier representative to determine the level of coverage necessary for the Franchised Business. Higher exposures may require higher limits.
Insurance Requirements
- a) Coverage against direct physical loss or damage to real and personal property, including improvements and betterments, written on a special form peril basis, including flood and earthquake, if the relevant property is situated in a flood or earthquake zone, in an amount equal to 100% of the Franchised Business' property value;
- b) Comprehensive general liability insurance, written on an occurrence basis, extended to include contractual liability, products and completed operations, and personal and advertising injury, with a combined bodily injury and property damage limit of at least $1,000,000 per occurrence and $2,000,000 in the aggregate;
- c) Statutory workers' compensation insurance as required by the law of the state in which the Franchised Business is located, with a limit of at least $1,000,000;
- d) Employer's liability insurance as required by the law of the state in which the Franchised Business is located, with a limit for bodily injury by accident of at least $500,000 and a limit for bodily injury by disease of at least $500,000, and an aggregate limit of at least $1,000,000;
- e) Business automobile insurance, including liability insurance coverage for hired and non-owned automobiles, with a combined single bodily injury and property damage limit of at least $1,000,000 per occurrence;
- f) Business interruption insurance equal to 12 months of your net income and continuing expenses, including Royalty Fees;
- g) Commercial umbrella liability insurance with a total liability limit of at least $2,500,000;
- h) Cyber insurance in the amount of at least $1,000,000 protecting against first party and third party claims;
- i) Employment practices liability insurance with a limit of at least $1,000,000 including actions of a third party and a minimum limit of $100,000 for wage and hour disputes; and
- j) All other insurance that we require in the Manuals or that is required by law or by the lease or s
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 20–22)
What This Means (2025 FDD)
According to Bee Organized's 2025 Franchise Disclosure Document, franchisees must obtain and maintain specific insurance coverage, with the details outlined in the manuals and subject to modification by Bee Organized. All insurance policies must be written by a responsible carrier acceptable to Bee Organized, and, with the exception of workers' compensation, must name Bee Organized and its related parties as additional insureds. The insurance carrier must provide Bee Organized with at least 30 days' prior written notice of any material alteration or cancellation of the policy. A certificate of insurance must be provided to Bee Organized either 90 days after the Franchise Agreement's effective date or before the start of initial training, whichever is earlier.
The minimum insurance requirements include coverage against direct physical loss or damage to real and personal property, with flood and earthquake coverage if applicable, equal to 100% of the business's property value. Comprehensive general liability insurance must be written on an occurrence basis, including contractual liability, products and completed operations, and personal and advertising injury, with a combined limit of at least $1,000,000 per occurrence and $2,000,000 in the aggregate. Statutory workers' compensation insurance is required as mandated by state law, with a limit of at least $1,000,000. Employer's liability insurance, also as required by state law, must have a limit of at least $500,000 for bodily injury by accident, $500,000 for bodily injury by disease, and an aggregate limit of at least $1,000,000.
Further insurance requirements for Bee Organized franchisees include business automobile insurance with a combined single limit of at least $1,000,000 per occurrence, covering hired and non-owned automobiles. Business interruption insurance must cover 12 months of net income and continuing expenses, including Royalty Fees. Commercial umbrella liability insurance is required with a total liability limit of at least $2,500,000. Cyber insurance must be in the amount of at least $1,000,000, protecting against first-party and third-party claims. Employment practices liability insurance is needed with a limit of at least $1,000,000, including actions of a third party, and a minimum limit of $100,000 for wage and hour disputes.
Finally, franchisees must also carry any other insurance required in the manuals, by law, or by the lease or sublease for the franchised business. Bee Organized advises franchisees to consult with their carrier representative to determine the necessary level of coverage, as higher exposures may necessitate higher limits. This comprehensive insurance requirement ensures that both the franchisee and Bee Organized are protected against a wide range of potential liabilities and losses.