What is the minimum A.M. Best rating required for the insurance carrier of a Bumper Man franchisee?
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
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 insurance carrier for a franchisee must have a minimum rating of A+ from A.M. Best Company. This requirement ensures that the insurance provider is financially stable and capable of covering potential claims.
Bumper Man requires franchisees to secure insurance coverage before commencing operations and to maintain continuous coverage throughout the term of the franchise agreement. Franchisees must provide evidence of insurance renewal to Bumper Man within 30 days prior to the expiration of any policy. The insurance policies must be primary and non-contributory to any other insurance Bumper Man has and provide 30 days' prior written notice to Bumper Man of any material modification, cancellation, or expiration of the policy.
The required insurance coverages include Garage Liability Insurance with a minimum $1,000,000 per occurrence policy limit, Garage Keepers Insurance with a $50,000 limit per vehicle, and Commercial Vehicle Insurance with a combined single policy limit of $500,000. Additionally, Bumper Man recommends that franchisees obtain business risk and casualty insurance. All insurance coverage must identify Bumper Man, Inc. as an additional insured.
Meeting the insurance requirements is a crucial aspect of operating a Bumper Man franchise, and franchisees should factor in the cost of insurance, estimated between $1,700 and $3,000, when planning their initial investment. Failing to maintain the required insurance coverage could result in a breach of the franchise agreement.