What is the recommended minimum coverage for a Commercial Umbrella Policy for a Benjamin Franklin Plumbing franchise?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type | Minimum Coverage |
|---|---|
| Commercial Umbrella Policy | $1 million excess over all underlying liability coverages per occurrence and $1 million in the aggregate |
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 37–43)
What This Means (2025 FDD)
According to the 2025 Benjamin Franklin Plumbing Franchise Disclosure Document, while not currently required, the recommended minimum coverage for a Commercial Umbrella Policy is $1 million excess over all underlying liability coverages per occurrence and $1 million in the aggregate.
This umbrella policy acts as an additional layer of protection above the other liability insurance policies a franchisee is required to maintain. It provides extra financial security in the event that claims exceed the limits of the underlying policies. The "per occurrence" limit applies to each individual incident, while the "aggregate" limit is the total amount the policy will pay out during its term.
Although this coverage is recommended and not mandated, Benjamin Franklin Plumbing franchisees should carefully consider the potential risks of operating their business and the benefits of having this additional layer of insurance. Franchisees should also note that Benjamin Franklin Plumbing can increase the coverage requirements or require different or additional kinds of insurance as they deem necessary.