What are the consequences if a Bumper Man franchisee fails to maintain required insurance coverage?

According to Bumper Man's 2025 Franchise Disclosure Document, failing to maintain the required insurance coverage as outlined in Section 13 of the Franchise Agreement constitutes a breach of the agreement. Specifically, Section 18(a)(xiv) states that Bumper Man may terminate the agreement if the franchisee does not have the required insurance coverage in effect at all times.

Bumper Man requires franchisees to obtain and maintain specific insurance policies as detailed in Exhibit E of the Franchise Agreement. These include Garage Liability Insurance with a minimum policy limit of $1,000,000 per occurrence, Garage Keepers Insurance with a limit of $50,000 per vehicle, and Commercial Vehicle Insurance with a combined single policy limit of $500,000. These policies must be issued by carriers with an A.M. Best Rating of A+ or better and authorized to do business in the state where the Bumper Business is located.

It is crucial for prospective Bumper Man franchisees to understand these insurance requirements and ensure they can consistently meet them. Failure to do so not only risks potential business liabilities but also gives Bumper Man the right to terminate the franchise agreement, resulting in the loss of the franchise and potentially significant financial repercussions.