What is the minimum required amount for Fleet Insurance coverage for a Budget franchise?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Insurance | Minimum Amount |
|---|---|
| Fleet Insurance | $100,000 / $300,000 bodily injury and$50,000 per occurrence for property damage, or such other amounts as are required by local law. |
| Lessor’s / Owner’s Excess Liability Insurance | $1,000,000 combined single limit per occurrence |
| General Liability Insurance | $1,000,000 combined single limits |
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 34–37)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, franchisees must maintain fleet insurance coverage. The minimum required amount is $100,000 per person and $300,000 per accident for bodily injury, and $50,000 per occurrence for property damage. However, the FDD also states that franchisees must carry such other amounts as are required by local law.
This means that a Budget franchisee needs to ensure their fleet insurance policy meets or exceeds these minimums, or complies with higher local requirements. It is the franchisee's responsibility to understand and comply with all applicable insurance laws and regulations in their specific location. Failure to maintain adequate insurance coverage could result in a breach of the franchise agreement.
In addition to fleet insurance, Budget also requires franchisees to maintain Lessor’s/Owner’s Excess Liability Insurance with a $1,000,000 combined single limit per occurrence, and General Liability Insurance with $1,000,000 combined single limits. Franchisees must also provide Budget with a current certificate of insurance annually, naming Budget and its affiliates as additional insureds. The insurer must waive any subrogation rights it may have against Budget.