What is the minimum required amount for Budget Lessor’s / Owner’s Excess Liability Insurance?
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 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 32–34)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, Budget franchisees are required to maintain Lessor’s / Owner’s Excess Liability Insurance. The minimum required amount for this insurance is $1,000,000 combined single limit per occurrence. This coverage is designed to protect both the franchisee and the vehicle owner (lessor) from significant financial losses in the event of an accident involving a rented vehicle.
Maintaining adequate insurance coverage is a standard requirement in the franchise industry, particularly in businesses like car rentals where the risk of accidents and liability is relatively high. The specific types and amounts of insurance required can vary depending on the nature of the business and the potential risks involved.
For a prospective Budget franchisee, understanding and securing the required insurance coverage is crucial for several reasons. First, it ensures compliance with Budget's franchise agreement and operational standards. Second, it provides financial protection against potential liabilities, which can be substantial in the event of an accident. Finally, it demonstrates a commitment to responsible business practices, which can enhance the franchisee's reputation and customer trust. Franchisees should factor in the cost of this insurance when evaluating the overall investment and operating expenses of a Budget franchise.