What are the minimum insurance coverage requirements for vehicles leased from Bimbo Foods Bakeries Distribution?
Bimbo_Foods_Bakeries_Distribution Franchise · 2025 FDDAnswer from 2025 FDD Document
account of such Vehicle.
- INSURANCE. Lessee shall obtain and maintain insurance on or with respect to each Vehicle at its own expense and in the amounts and forms satisfactory to Lessor. In no event shall any insurance coverage be less than the following: (a) physical damage insurance insuring against loss or damage to the Vehicles in an amount not less than the full replacement value of such Vehicle; and (b)(i) in all States except Florida: (1) not greater than $500 deductible for collision, fire, theft, and comprehensive, and (2) $500,000 combined single limit for bodily injury liability and property damage; or (b)(ii) for the State of Florida: (1) not greater than $500 deductible for collision, fire, theft, and comprehensive, and (2) $250,000 per person / $500,000 per incident bodily injury liability, and (3) $100,000 property damage liability. In addition, the following require $1,000,000 excess liability coverage (umbrella): (a) truck/tractors over 45,000 lbs.; (b) trailers/semi-trailers; tow trucks; and (c) limo uses for livery. Lessee shall furnish Lessor with a certificate of insurance evidencing issuance of such insurance to Lessee in at least the minimum amount required herein, naming Lessor and such other parties designated by Lessor as additional insured thereunder for liability coverage, and as loss payee for property damage coverage. Each policy shall require insurer to give Lessor 30 days prior written notice of any material alteration in terms of policy or cancellation thereof, and shall provide that no action, misrepresentation or breach of warranty of Lessee shall invalidate the policy. If Lessee fails to provide such insurance, Lessor shall have the right, but no duty, to obtain such insurance, and Lessee shall pay Lessor all costs thereof, including all costs incurred by Lessor in obtaining such insurance together with interest at the Default Rate from the date paid by Lessor to the date paid in full by Lessee. Lessee shall not use any Vehicle if the insurance required herein is not in full force and effect with respect to such Vehicle. Upon Loss or Damage as set forth in Section 14 hereof, Lessee shall receive credit for any amounts paid to Lessor by the insurer against Lessee's obligations hereunder.
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- INDEMNITY.
Source: Item 14 — Other Accounts Payable and Accrued Liabilities (FDD pages 312–476)
What This Means (2025 FDD)
According to Bimbo Foods Bakeries Distribution's 2025 Franchise Disclosure Document, franchisees are required to obtain and maintain insurance on all leased vehicles. The specific amounts and forms of insurance must be satisfactory to the Lessor.
Minimum coverage includes physical damage insurance covering loss or damage to the vehicles, with a deductible no greater than $500 for collision, fire, theft, and comprehensive coverage. For bodily injury liability and property damage, the requirements vary by state. In all states except Florida, the minimum is $500,000 combined single limit. In Florida, the minimum coverage is $250,000 per person and $500,000 per incident for bodily injury, along with $100,000 for property damage liability.
Additionally, $1,000,000 in excess liability coverage (umbrella) is required for specific types of vehicles: trucks/tractors over 45,000 lbs, trailers/semi-trailers, tow trucks, and vehicles used for limo/livery services. Franchisees must provide the Lessor with a certificate of insurance, naming the Lessor as an additional insured for liability coverage and as a loss payee for property damage coverage. The insurance policy must also require the insurer to provide the Lessor with 30 days' written notice of any material changes or cancellation and ensure that the policy is not invalidated by any action, misrepresentation, or breach of warranty by the franchisee.
If a franchisee fails to maintain the required insurance, Bimbo Foods Bakeries Distribution has the right, but not the duty, to obtain insurance on the franchisee's behalf, with the franchisee responsible for all associated costs and interest. The franchisee is prohibited from using any vehicle if the required insurance is not in full effect. Upon any loss or damage, the franchisee will receive credit for any insurance amounts paid to the Lessor against their obligations.