What minimum amount of Business Automobile Liability insurance is required for a Bombs Away franchise?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
rchases and leases:
- A. Insurance. You must obtain insurance as described in the Franchise Agreement and in our Manual, which includes (i) Commercial General Liability insurance, including products liability coverage, and broad form commercial liability coverage, written on an "occurrence" policy form in an amount of not less than $1,000,000 single limit per occurrence and $2,000,000 aggregate limit, (ii) Business Automobile Liability insurance including owned, leased, non-owned and hired automobiles coverage in an amount of not less than $1,000,000, and (iii) Workers Compensation coverage as required by state law. Your policies (other than Workers Compensation) must list us and our affiliates as an additional insured, must include a waiver of subrogation in favor of us and our affiliates, must be primary and non-contributing with any insurance carried by us or our affiliates, and must stipulate that we receive 30 days' prior written not
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 15–17)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, franchisees must maintain Business Automobile Liability insurance with coverage of at least $1,000,000. This insurance must cover owned, leased, non-owned, and hired automobiles.
This requirement ensures that Bombs Away franchisees have adequate financial protection in case of accidents involving vehicles used for the business. The policy limits provide coverage for potential liabilities arising from bodily injury or property damage caused by the franchisee's vehicles. This is a fairly standard requirement in the franchise industry, especially for businesses that involve transportation or on-site services.
Bombs Away also requires that the insurance policy lists the franchisor and its affiliates as additional insured parties and includes a waiver of subrogation in their favor. Furthermore, the policy must be primary and non-contributing with any insurance carried by Bombs Away or its affiliates. The franchisee must also ensure that Bombs Away receives 30 days' prior written notice of any policy cancellation. These stipulations protect Bombs Away from potential liabilities and ensure they are informed of any changes to the franchisee's insurance coverage.