What is the minimum Cyber Liability insurance coverage required for a Big Apple Bagels franchise?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
e, muffins, sandwiches, and/or coffee, as well as any other items or products that Franchisee is authorized to sell subsequent to the date of this Agreement, to the public through retail or wholesale channels of distribution.
g. Insurance.
- i. During the term of the Franchise, Franchisee shall maintain in force, under policies of insurance issued by carriers duly admitted in the Store's state, with an A.M. Best rating not less than A-, and acceptable to Franchisor, comprehensive general liability and property damage insurance against claims for bodily and personal injury, death and property damage caused by or occurring in conjunction with the operation of the BAGELS Store, or otherwise in conjunction with the conduct of business by Franchisee pursuant to the Franchise Agreement, under one or more policies of insurance containing coverage for: Workers Compensation including Employers Liability in the limit of no less than $500,000; Comprehensive General Liability of no less than $1,000,000 per occurrence with a General Aggregate of no less than $2,000,000.00; Products Liability of $2,000,000; Employment Practices Liability of no less than $500,000, Cyber Liability of no less than $1,000,000; Property Insurance in the amount of the replacement cost for stock, inventory, equ
Source: Item 22 — CONTRACTS (FDD pages 86–87)
What This Means (2025 FDD)
According to Big Apple Bagels' 2025 Franchise Disclosure Document, franchisees must maintain Cyber Liability insurance coverage of no less than $1,000,000. This coverage is part of a broader set of insurance requirements that Big Apple Bagels mandates to protect against various risks associated with operating a franchise.
This requirement means that a Big Apple Bagels franchisee needs to secure an insurance policy that specifically covers losses or liabilities arising from cyber incidents, such as data breaches, hacking, or other technology-related problems. The $1,000,000 coverage limit represents the minimum amount the insurance policy must provide to cover potential damages or legal costs resulting from such incidents.
Cyber Liability insurance is increasingly important for businesses, including franchises, due to the growing reliance on digital systems and the increasing sophistication of cyber threats. By requiring this coverage, Big Apple Bagels aims to protect both the franchisee's business and the overall brand from the financial and reputational damage that can result from cyberattacks. Franchisees should factor in the cost of this insurance when evaluating the overall investment required to start and operate a Big Apple Bagels franchise.
Big Apple Bagels also retains the right to increase the required coverage amounts or mandate different or additional kinds of insurance in the future to reflect changes in risk exposure, legal standards, or other relevant circumstances. This means that franchisees need to stay informed about any changes to the insurance requirements and be prepared to adjust their coverage accordingly.