What is the minimum limit for Cyber-liability coverage a Brightstar Care franchisee must maintain?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
combined single limit each accident.
- 16.1.5 Special Form property insurance in an amount appropriate for Agency personal property. Business Income and Extra Expense must be included in an amount no less than $300,000.
- 16.1.6 An umbrella with a minimum $1,000,000 limit excess over the professional, general, auto, and employer's liability (part of Work Comp).
- 16.1.7 Cyber-liability under the following annual revenue tiers with a:
- (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 $0 - $5,000,000;
- (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
- (3) $2,500,000 minimum limit responding to unauthorized access of your locati
- 16.1.7 Cyber-liability under the following annual revenue tiers with a:
Source: Item 22 — CONTRACTS (FDD pages 117–118)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, the minimum limit for cyber-liability coverage a franchisee must maintain depends on their annual revenue. If a Brightstar Care franchisee's annual revenue is between $0 and $5,000,000, they must maintain a minimum limit of $500,000. This coverage responds to unauthorized access of the location's computer system and covers costs associated with notification of affected parties, credit monitoring, investigative and administrative costs, as well as third-party liability for the breach.
For Brightstar Care franchisees with annual revenue between $5,000,001 and $10,000,000, the minimum cyber-liability coverage limit increases to $1,500,000. This higher limit also covers costs related to unauthorized access, including notification, credit monitoring, investigation, administration, and third-party liability.
If a Brightstar Care franchisee's annual revenue exceeds $10,000,000, they are required to maintain a minimum cyber-liability coverage limit of $2,500,000. This coverage is consistent with the other tiers, addressing costs associated with unauthorized access, such as notification, credit monitoring, investigative and administrative expenses, and third-party liability resulting from the breach. It is important for prospective franchisees to consider their projected revenue when assessing the costs associated with meeting these insurance requirements.