Does Buildingstars make any representations about the adequacy of the insurance coverage provided by the Insurance Program Fee?

According to Buildingstars's 2025 Franchise Disclosure Document, Buildingstars does not make any representations regarding the adequacy of its insurance coverage. Buildingstars requires franchisees to participate in their insurance program and pay an Insurance Program Fee, which is currently 3.5% of Gross Revenue. This fee covers worker's compensation, general liability insurance with limits of $1,000,000 per occurrence, $2,000,000 products/completed operations aggregate, $2,000,000 aggregate, and non-owned auto insurance.

However, Buildingstars explicitly states that the insurance coverage provided through the Insurance Program Fee is the minimum requirement. Franchisees are advised to consult with their own insurance agents to determine if the types and amounts of coverage are sufficient to protect their interests. Buildingstars emphasizes that it makes no representation, either express or implied, that the policies and amounts covered by the Insurance Program Fee are sufficient for the franchisee's needs.

This means that while Buildingstars provides a base level of insurance, franchisees should not assume that it will fully cover all potential liabilities or losses. It is the franchisee's responsibility to assess their individual risk profile and secure additional coverage if necessary. Buildingstars also reserves the right to change, modify, or discontinue the Insurance Program at any time, further highlighting the importance of franchisees taking proactive steps to ensure adequate protection.