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What is the minimum cyber-liability insurance limit required for a Brightstar Care franchise with annual revenue between $5,000,001 and $10,000,000?

Q: What is the minimum cyber-liability insurance limit required for a Brightstar Care franchise with annual revenue between $5,000,001 and $10,000,000?

- 16.1.7 Cyber-liability under the following annual revenue tiers with a: - (2) $1,500,000 minimum limit responding to unauthorized access of your location's computer system, covering costs associated with notification of affected parties, credit monitoring, investigative & administrative costs, as well as 3rd party liability for the breach if your annual revenue is between $5,000,001 - $10,000,000; and Source: Item 22 — CONTRACTS (FDD pages 117–118)

Brightstar_Care Franchise · 2025 FDD

Answer from 2025 FDD Document

16.1.7 Cyber-liability under the following annual revenue tiers with a:
(2) $1,500,000 minimum limit responding to unauthorized access of your location's computer system, covering costs associated with notification of affected parties, credit monitoring, investigative & administrative costs, as well as 3rd party liability for the breach if your annual revenue is between $5,000,001 - $10,000,000; and

Source: Item 22 — CONTRACTS (FDD pages 117–118)

What This Means (2025 FDD)

According to Brightstar Care's 2025 Franchise Disclosure Document, a franchisee with an annual revenue between $5,000,001 and $10,000,000 must maintain cyber-liability insurance with a minimum limit of $1,500,000. This insurance coverage is designed to respond to unauthorized access to the franchise location's computer system.

The cyber-liability insurance covers various costs associated with a data breach, including notifying affected parties, providing credit monitoring services, covering investigative and administrative expenses, and addressing third-party liability claims resulting from the breach. This type of insurance is crucial for protecting the Brightstar Care franchise from the financial repercussions of cyberattacks, which can be significant and damaging to the business's reputation.

It is important for prospective Brightstar Care franchisees to factor in the cost of this cyber-liability insurance when assessing the overall financial investment required to start and operate the franchise. The specific premium for this insurance can vary based on factors such as the franchisee's location, security measures in place, and the insurance provider selected. Franchisees should consult with insurance professionals to obtain quotes and ensure they have adequate coverage to meet Brightstar Care's requirements and protect their business from cyber threats.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.

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