What is the minimum amount of employer's liability insurance required for a Boulder Designs franchise?

According to Boulder Designs' 2025 Franchise Disclosure Document, franchisees must maintain employer's liability insurance with a minimum coverage of $500,000. This insurance requirement is part of a broader set of insurance obligations that Boulder Designs imposes on its franchisees to mitigate risks associated with the business operations.

In addition to employer's liability insurance, Boulder Designs requires franchisees to secure other types of coverage, including property insurance, general commercial liability insurance ($1,000,000 per occurrence with a $2,000,000 general aggregate), comprehensive general liability insurance ($30,000 per occurrence and aggregate), workers' compensation insurance for statutory limits, vehicle replacement insurance (around $30,000), and automobile liability coverage ($1,000,000 combined single limit). These requirements ensure that franchisees are adequately protected against various potential liabilities and losses.

Boulder Designs also reserves the right to modify these minimum insurance requirements, potentially increasing coverage amounts or adding new types of insurance to address factors like inflation, changes in liability standards, or emerging risks such as cybersecurity threats. Franchisees are advised to consult with their insurance advisors to determine the appropriate and sufficient coverage levels for their specific business needs and to protect their assets. Furthermore, landlords and lenders may impose additional insurance requirements, so franchisees must ensure they meet all contractual obligations.

It is common practice in the franchise industry for franchisors to mandate specific insurance coverages to protect both the franchisee and the brand from potential liabilities. The franchisee is responsible for the costs associated with obtaining and maintaining the required insurance policies. Failing to maintain the required insurance coverage could result in a breach of the franchise agreement and potential penalties.