Is it mandatory for a Byrider franchisee to purchase an Umbrella policy?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
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- (5) All risks coverage insurance on the Business Location and all fixtures, equipment, supplies and other property used in the operation of th
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, it is recommended, but not required, that franchisees purchase an Umbrella policy. Specifically, Byrider suggests a $1,000,000 Umbrella policy in addition to all other liability coverage.
While the Umbrella policy is not mandatory, Byrider does require franchisees to maintain several other types of insurance coverage. These include Garage Liability insurance with a $1,000,000 limit, Worker's Compensation, Unemployment Insurance, Truth-in-Lending Act Insurance of at least $300,000, all-risks coverage insurance, and Cyber Liability Insurance of at least $1,000,000 per occurrence.
It is important to note that Byrider can modify the minimum insurance coverage limits and may require different or additional insurance coverages at any time to reflect inflation, new risks, changes in law, or other relevant changes. Failure to maintain the required insurance can result in the termination of the Franchise Agreement.