What are the minimum requirements for workers' compensation and employer's liability insurance for a Boulder Designs franchise?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
ggregate; and
- d) Workers' compensation insurance for statutory limits and employer's liability insurance in an amount not less than $500,000; and
- e) Vehicle replacement insurance to cover the cost of acquiring a replacement vehicle, typically around $30,000; and
- f) Automobile liability coverage, including coverage of owned, non-owned and hired vehicles with coverage in amounts not less than $1,000,000 combined single limit; and
- g) Franchisor reserves the right to require you to obtain insurance policies to protect against cybersecurity threats, and accordingly, to require that Franchisor is named as additional insured on these cybersecurity insurance policies.
We must be named as additional insured on all of these policies, except for worker's compensation insurance, and provide us with the additional insured endorsement for each policy. All insurance policies must include a waiver of subrogation in favor of us and our affiliates, and each company's officers, directors, shareholders, partners, members, agents, representatives, independent contractors, servants, and employees, and must include a 30-day notice of cancellation directed to both you and to us or the person we designate.
These are our minimum requirements.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 20–22)
What This Means (2025 FDD)
According to Boulder Designs's 2025 Franchise Disclosure Document, franchisees must maintain certain minimum insurance coverages. Specifically, Boulder Designs requires franchisees to secure workers' compensation insurance for statutory limits and employer's liability insurance in an amount not less than $500,000. This requirement ensures that franchisees are adequately protected against potential liabilities related to employee injuries or illnesses sustained during their work for the Boulder Designs business.
Boulder Designs mandates that they be named as an additional insured on all insurance policies, except for worker's compensation insurance. Franchisees must also provide Boulder Designs with the additional insured endorsement for each policy. All insurance policies must include a waiver of subrogation in favor of Boulder Designs and its affiliates, including their officers, directors, shareholders, partners, members, agents, representatives, independent contractors, servants, and employees. Additionally, each policy must include a 30-day notice of cancellation directed to both the franchisee and Boulder Designs or their designated representative.
It is important to note that these are just the minimum insurance requirements set by Boulder Designs. The document states that Boulder Designs reserves the right to modify these minimum coverages and require different or additional kinds of insurance to reflect factors such as inflation, changes in liability standards, higher damage awards, and other relevant changes in circumstances. Boulder Designs advises franchisees to consult with their own insurance advisor to determine whether these minimum requirements are appropriate and sufficient for their specific business needs and to protect their assets. Furthermore, a franchisee's landlord and lease agreement may require more coverage or additional types of coverage.
Prospective Boulder Designs franchisees should carefully review these insurance requirements and discuss them with an insurance professional to ensure they obtain adequate coverage. Understanding and meeting these requirements is crucial for protecting the franchisee's business and assets, as well as ensuring compliance with Boulder Designs's standards and legal obligations.