What is the minimum Cyber Liability Insurance coverage a Byrider franchisee must maintain per occurrence?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
- A. The Franchisee shall purchase at its sole expense and maintain in effect at all times during the Term the greater of the insurance coverage required by the landlord for the Business Location or the following categories of insurance coverage through licensed and admitted insurance companies acceptable to the Company:
- (6) Cyber Liability Insurance not less than $1,000,000 per occurrence.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, franchisees are required to maintain Cyber Liability Insurance with a minimum coverage of $1,000,000 per occurrence. This insurance protects both the franchisee and Byrider against potential financial losses resulting from cyber incidents, such as data breaches or network security failures.
Maintaining adequate cyber liability insurance is crucial in today's business environment, where cyber threats are increasingly prevalent and sophisticated. The $1,000,000 per occurrence minimum coverage ensures that Byrider franchisees have sufficient financial resources to address the costs associated with a cyber incident, which may include legal fees, customer notification expenses, and remediation efforts.
It is important to note that Byrider can modify the minimum insurance coverage requirements over time to reflect changes in the business environment, legal landscape, or claims experience. Franchisees are obligated to comply with these updated requirements and purchase insurance that conforms to the newly established standards. Franchisees must also provide Byrider with copies of their insurance certificates to demonstrate compliance with the insurance requirements. Failure to maintain the required insurance coverage constitutes a material breach of the Franchise Agreement, potentially leading to termination of the agreement.