What is the minimum required Cyber Liability coverage 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's 2025 Franchise Disclosure Document, franchisees must maintain Cyber Liability coverage of no less than $1,000,000. This insurance coverage is intended to protect the business against risks associated with data breaches, cyber attacks, and other technology-related liabilities.
Maintaining this level of coverage is a requirement throughout the term of the franchise agreement. Franchisees are responsible for securing policies from insurance carriers that are duly admitted in the store's state and have an A.M. Best rating of not less than A-, and are acceptable to Big Apple Bagels.
Big Apple Bagels retains the right to periodically increase the required coverage amounts or mandate different or additional kinds of insurance to reflect changes in circumstances such as inflation, the identification of new risks, or changes in legal standards. This ensures that the insurance coverage remains adequate over time. The franchisee is responsible for the cost of the insurance, and this cost can vary based on the coverage limits and other factors affecting risk exposure.