When must a Bumper Man franchisee obtain the required insurance?
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 Bump
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 15–18)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, a franchisee must obtain the required insurance at least two weeks prior to commencing operations. The cost of insurance will vary depending on the location of the Bumper Man business, the value of the inventory, and the type of vehicle used.
Bumper Man requires franchisees to maintain specific insurance coverage, including Garage Liability Insurance with a $1,000,000 minimum policy limit, Garage Keepers Insurance with a $50,000 limit per vehicle, and Commercial Vehicle Insurance with a $500,000 combined single limit. The insurance carrier must have an A+ rating or better from A.M. Best Company and be authorized to conduct business in the state where the Bumper Man business operates.
Furthermore, Bumper Man, Inc. must be listed as an additional insured on all policies, and the policies must be primary and non-contributory to any other insurance Bumper Man has. Franchisees must provide Bumper Man with evidence of insurance renewal 30 days before the policy's expiration. The FDD also recommends that franchisees obtain business risk and casualty insurance to protect their business interests.