What provision or endorsement must Bumper Man's insurance policies include?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
e in writing.
At least two weeks prior to the date upon which we approve you to commence operation of your Bumper Business, you must obtain all required insurance policies. 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 Designated Area is located and the policies must: (1) include a waiver of subrogation provision or endorsement in favor of us; (2) be primary and non-contributory to any other insurance that we have procured for ourselves; and (3) provide for 30 days' prior written notice to us of any material modification, cancellation, or expiration of such policy. The endorsements must not contain language that limits the liability afforded to us to any amount less than the amount 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.
As of the issuance date of this disclosure document, you are required to obtain the following insurance policies: (1) Garage Liability Insurance policy with a minimum each occurrence policy limit of $1,000,000; (2) Garage Keepers Insurance policy with a required limit per vehicle of $50,000; and (3) Commercial Vehicle Insurance policy with a combined single policy limit of $500,000. You must provide certificates of insurance, copies of insurance and other related documentation that we may request evidencing that you have the required insurance prior to beginning operation of your Bumper Business, annually upon the renewal of each policy and in the event of any change to any policy. We reserve the right to modify the insurance requirements at any time, and any such modifications will be described
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 18–20)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, the insurance policies that franchisees are required to obtain must include a waiver of subrogation provision or endorsement in favor of Bumper Man, Inc. This means that the franchisee's insurance company agrees to waive any rights to recover payments from Bumper Man, Inc. if the insurance company pays out a claim to the franchisee. The policies must also be primary and non-contributory to any other insurance that Bumper Man has procured for themselves. This means that the franchisee's insurance policy will be the first one to pay out in the event of a claim, and Bumper Man's insurance will only be used as secondary coverage.
Additionally, the insurance policies must provide for 30 days' prior written notice to Bumper Man of any material modification, cancellation, or expiration of such policy. This ensures that Bumper Man is aware of any changes to the franchisee's insurance coverage and can take steps to protect its interests. The endorsements must not contain language that limits the liability afforded to Bumper Man to any amount less than the amount 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.
Bumper Man franchisees are required to obtain specific insurance policies, including a Garage Liability Insurance policy with a minimum each occurrence policy limit of $1,000,000, a Garage Keepers Insurance policy with a required limit per vehicle of $50,000, and a Commercial Vehicle Insurance policy with a combined single policy limit of $500,000. Franchisees must provide certificates of insurance, copies of insurance, and other related documentation that Bumper Man may request, evidencing that they have the required insurance prior to beginning operation of their Bumper Business, annually upon the renewal of each policy, and in the event of any change to any policy. Bumper Man reserves the right to modify the insurance requirements at any time, and any such modifications will be described in the Manual.
It is common practice in franchising for franchisors to require specific insurance coverage from franchisees to protect the brand and the franchisor from potential liabilities. The A+ or better A.M. Best rating requirement ensures that the insurance carrier is financially stable and capable of paying out claims. The waiver of subrogation, primary and non-contributory clauses, and notice requirements are all designed to protect Bumper Man's interests in the event of a claim. Prospective franchisees should carefully review the insurance requirements and ensure that they can obtain the necessary coverage at a reasonable cost.