What factors influence the cost of insurance for a Bumper Man franchise?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
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- At least two weeks prior to the date you commence operations of your Bumper Business, you must obtain the required insurance. Insurance costs are highly dependent on the geographical location of your Bumper Business, the dollar amount of your inventory, the type of vehicle you own and other factors. Within 30 days prior to the expiration of any such policy, you will deliver to us evidence of renewal of such insurance in the form of certificates evidencing coverage. The insurance carrier must be rated A+ or better by A.M. Best Company and be authorized to transact business in the state where the Bumper Business premises is located. All policies must be primary and non-contributory to any other insurance that we have procured for ourselves and provide for 30 days' prior written notice to us of any material modification, cancellation, or expiration of such policy. Such endorsements must not contain language that limits the liability afforded to us to any amount less than stated on the declarations page of each policy. No insurance policy will contain a provision that in any way limits or reduces coverage for you in the event of a claim by us. Such insurance coverage will not include an insured versus insured exclusion or any exclusion that prevents coverage of a claim by one insured against another. All insurance coverage will include a separation of insureds provision. All insurance coverage will identify as an additional insured Bumper Man, Inc., 1432 Airport Blvd, Mesquite, TX, 75181. Required and recommended coverages include the following:
- Garage Liability Insurance policy with a minimum each occurrence policy limit of $1,000,000.
- Garage Keepers Insurance policy with a required limit per vehicle of $50,000.
- Commercial Vehicle Insurance policy with a combined single policy limit of $500,000.
We also recommend (but do not require) that you obtain business risk and casualty insurance, in limits and on terms adequate to protect your interest in your continuing operation of the Bumper Business.
- This item estimates your initial startup expenses for a 3-month period. Your requirement for additional funds will vary.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 15–18)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, the cost of insurance for a Bumper Man franchise is influenced by several factors. These include the geographical location of the business, the dollar amount of the franchisee's inventory, and the type of vehicle owned. The FDD also specifies that franchisees must obtain the required insurance at least two weeks before commencing operations.
Bumper Man requires specific insurance coverages, including 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. The insurance carrier must have an A+ or better rating from A.M. Best Company and be authorized to conduct business in the state where the Bumper Business is located. Franchisees must provide evidence of renewal of their insurance policies to Bumper Man within 30 days prior to the policy's expiration.
The insurance policies must be primary and non-contributory to any other insurance Bumper Man has, and Bumper Man must receive 30 days' prior written notice of any material modification, cancellation, or expiration of the policy. The policies must not limit Bumper Man's liability to less than the amount stated on the declarations page, and they cannot include provisions that limit or reduce coverage for the franchisee in the event of a claim by Bumper Man. The insurance coverage must include a separation of insureds provision and identify Bumper Man, Inc. as an additional insured. The estimated initial investment for insurance ranges from $1,700 to $3,000, payable as arranged before opening to a broker.