What is the minimum coverage amount required for auto liability insurance for a Bumble Roofing franchisee?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
ior written notice to you.
You are also required to purchase and maintain the insurance that we describe in the Operations Manual which may be adjusted periodically. Currently, you must procure and maintain, at your own expense, (a) general liability insurance with coverage of at least $1,000,000 per occurrence and $2,000,000 in the aggregate, (b) auto liability insurance with at least $1,000,000 each accident, and hired and nonowned auto liability with at least $1,000,000 in coverage, (c) an umbrella liability with a minimum of $1,000,000 and recommended $2,000,000 in coverage, (d) business personal property insurance in the amount of at least $10,000 per location, (e) workers compensation insurance of at least $1,000,000 for bodily injury caused by accident and $1,000,000 for bodily injury by disease, and (f) business interruption insurance for a minimum of 12 months equal to 12 months' financial obligations to us and all others. You must also procure and maintain all other insurance required by state or federal law, includ
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 27–29)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, franchisees are required to maintain certain insurance coverages. Specifically, Bumble Roofing franchisees must have auto liability insurance with a minimum coverage of $1,000,000 for each accident. Additionally, they need hired and nonowned auto liability coverage of at least $1,000,000.
This insurance requirement is in place to protect both the franchisee and Bumble Roofing from potential financial liabilities arising from accidents involving vehicles used in the operation of the franchise. Maintaining adequate insurance coverage is a standard practice in the franchise industry, particularly for businesses that involve on-site services and the use of vehicles.
Prospective Bumble Roofing franchisees should factor in the cost of these insurance policies when evaluating the overall investment required to start and operate the franchise. It is also important to note that the Operations Manual, which may be adjusted periodically, contains the details of the insurance requirements. Therefore, franchisees need to stay updated with any changes to these requirements to ensure they remain compliant.