What is a requirement regarding endorsements limiting Bumper Man's liability?
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, franchisees must secure insurance policies that do not limit Bumper Man's liability. Specifically, the insurance 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. This requirement is part of a broader set of insurance obligations franchisees must meet to operate a Bumper Man franchise.
Bumper Man requires franchisees to maintain several insurance policies, including Garage Liability Insurance with a $1,000,000 minimum per occurrence policy limit, Garage Keepers Insurance with a $50,000 limit per vehicle, and Commercial Vehicle Insurance with a $500,000 combined single policy limit. These policies must also include a waiver of subrogation in favor of Bumper Man and be primary and non-contributory to any other insurance Bumper Man has. Additionally, Bumper Man must receive 30 days' prior written notice of any material modification, cancellation, or expiration of the policies.
These insurance requirements ensure that Bumper Man is protected from potential liabilities arising from the franchisee's operations. By preventing endorsements that limit Bumper Man's liability, the franchisor aims to maintain consistent and adequate coverage across all franchise locations. Franchisees must provide certificates of insurance and related documentation to Bumper Man before beginning operations, annually upon renewal, and in the event of any policy changes, demonstrating ongoing compliance with these requirements.
Prospective franchisees should carefully review these insurance obligations and factor the costs of meeting these requirements into their initial investment and ongoing operating expenses. It is also important to note that Bumper Man reserves the right to modify these insurance requirements at any time, as described in the Manual, which could potentially increase the financial burden on franchisees.