What is the minimum required Cyber Security Liability coverage for a Bw Premier Collection franchise?
Bw_Premier_Collection Franchise · 2025 FDDAnswer from 2025 FDD Document
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You must maintain, at your own expense, general liability insurance, automobile liability insurance (for owned, non-owned, and hired automobiles) and cyber liability insurance, each in the following amounts:
- Commercial General Liability: $6M General/Excess/Umbrella. Best Western strongly recommends that assault and battery, abuse and molestation, and human trafficking liability coverage not be limited or excluded. Exposure to carbon monoxide may not be excluded and may not be limited to amounts less than the $6M.
- Automobile Liability: $1M coverage for owned, hired and non-owned automobiles.
- Cyber Security Liability: $1M.
- Worker's Compensation: As required by law.
All required insurance must name us as an additional insured and certificate h
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 30–32)
What This Means (2025 FDD)
According to Bw Premier Collection's 2025 Franchise Disclosure Document, franchisees are required to maintain Cyber Security Liability coverage of at least $1,000,000. This is in addition to other required insurance coverages, including Commercial General Liability and Automobile Liability.
Maintaining this level of cyber security insurance is crucial for protecting the Bw Premier Collection hotel from potential financial losses resulting from data breaches, cyberattacks, and other security incidents. These incidents can lead to significant expenses related to legal fees, customer notification, credit monitoring, and recovery efforts. The $1,000,000 coverage helps to mitigate these risks and ensure the hotel can continue operations in the event of a cyber security breach.
Bw Premier Collection also requires franchisees to name them as an additional insured and certificate holder on all required insurance policies. This protects the Bw Premier Collection brand and provides an additional layer of security in case of a claim. Franchisees must ensure they obtain the necessary insurance coverage and provide proof of insurance to Bw Premier Collection to remain in compliance with the franchise agreement.
While the FDD specifies the minimum required coverage amounts, franchisees may consider obtaining higher coverage limits based on their individual risk assessment and business needs. Factors such as the size of the hotel, the volume of sensitive data processed, and the overall IT security posture can influence the appropriate level of coverage. Consulting with an insurance professional is recommended to determine the optimal coverage for each Bw Premier Collection location.