What is the minimum coverage amount required for umbrella 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. Among these is an umbrella liability insurance policy. The minimum coverage amount required for this umbrella policy is $1,000,000, though Bumble Roofing recommends a $2,000,000 coverage.
In practical terms, this means a prospective Bumble Roofing franchisee must budget for and secure an umbrella liability policy that meets at least the $1,000,000 minimum. This insurance is in addition to other required policies, such as general liability, auto liability, business personal property, workers compensation, and business interruption insurance. Failing to maintain the required insurance coverage could result in a breach of the franchise agreement.
Umbrella liability insurance provides an extra layer of protection beyond the limits of the franchisee's other liability policies. It can cover costs associated with large claims or lawsuits that exceed the coverage limits of the general and auto liability policies. While Bumble Roofing only mandates $1,000,000 in coverage, the recommendation of $2,000,000 suggests that the franchisor believes a higher level of protection may be prudent, depending on the franchisee's specific circumstances and risk tolerance.