What is the minimum required amount for General Liability 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 General Liability Insurance with a minimum coverage of $1,000,000 combined single limits. This insurance protects Budget franchisees from financial losses due to bodily injury or property damage caused to third parties as a result of their business operations.
Maintaining adequate general liability insurance is a standard requirement in franchising, particularly in the car rental industry where the risk of accidents and related liabilities is significant. The $1,000,000 coverage requirement ensures that Budget franchisees can meet potential financial obligations arising from lawsuits or claims.
Budget also has the right to increase the required insurance amounts periodically to reflect inflation, changes in liability standards, higher damages, or the franchisee's specific claims history. Additionally, franchisees must provide Budget with an annual certificate of insurance, naming Budget and its affiliates as additional insureds, and the insurer must waive any subrogation rights against Budget. This protects Budget from potential liabilities arising from the franchisee's operations and ensures that the franchisee maintains continuous and adequate coverage.