What are the requirements for the insurance carrier writing the policies for a Benjamin Franklin Plumbing franchise?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
y Fees with no co-insurance clause | | Employment Practices | $25,000 policy limit | | Cyber Liability/Data Compromise | $25,000 policy limit |Your insurance policies must be written by a carrier with an industry rating acceptable to us, must name us, AB Inc. (in its capacity as Manager under the management agreement with us), and their parents, subsidiaries, and affiliates; and their respective officers, directors, members, shareholders and employees as additional insureds, and must not have deductibles, exclusions or co-insurance that are unacceptable to us. All public liability and property damage policies must contain a waiver by the insurance company of subrogation rights against us and our affiliates, successors, and assigns.
We can increase the coverage requirements and/or require different or additional kinds of insurance as we deem necessary.
Prior to opening your Franchised Business, you must provide us with certificates of insurance demonstrating that you have obtained all insurance policies and certificates required. At least 30 days before expiration of a policy, you must furnish evidence of renewal or replacement insurance. If you do not obtain the required coverage, we have the right (but no obligation) to obtain insurance on your behalf. If we do so, you must reimburse us for the cost of insurance, plus a reasonable fee for our services.
Vehicles. You must own, lease, or buy at least two vehicles (one service vehicle and one installation vehicle) that are operable, less than seven years old, and meet the other requirements we specify in the Operations Manual.
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 FDD, the insurance policies must be written by a carrier with an industry rating acceptable to Benjamin Franklin Plumbing. The policies must name Benjamin Franklin Plumbing, AB Inc. (as Manager), and their parents, subsidiaries, and affiliates, along with their respective officers, directors, members, shareholders, and employees as additional insureds. The policies must not have deductibles, exclusions, or co-insurance that are unacceptable to Benjamin Franklin Plumbing. All public liability and property damage policies must contain a waiver by the insurance company of subrogation rights against Benjamin Franklin Plumbing and its affiliates, successors, and assigns.
Benjamin Franklin Plumbing retains the right to increase coverage requirements or require different or additional kinds of insurance as deemed necessary. Before opening the Franchised Business, franchisees must provide certificates of insurance demonstrating they have obtained all required insurance policies and certificates. At least 30 days before a policy's expiration, evidence of renewal or replacement insurance must be furnished. If a franchisee fails to obtain the required coverage, Benjamin Franklin Plumbing has the right, but not the obligation, to obtain insurance on the franchisee's behalf, with the franchisee responsible for reimbursing the cost of insurance plus a reasonable fee for services.
As of the date of the 2025 disclosure document, franchisees are not required to obtain insurance through a particular designated vendor; however, Benjamin Franklin Plumbing currently requires that franchisees obtain an estimate for insurance coverage meeting the requirements through their designated or approved vendor. The FDD also specifies the minimum coverage amounts for different types of insurance, such as Comprehensive General Liability, Automobile Liability, Employer Liability, and Workers Compensation. Recommended but not currently required insurance coverage includes Commercial Umbrella Policy, Business Interruption, Employment Practices, and Cyber Liability/Data Compromise.