What is the minimum Truth-in-Lending Act Insurance amount required for a Byrider franchise?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
you.
You must purchase at your expense and maintain in effect at all times the greater of the insurance coverage by the landlord for the franchised location or the following categories of insurance coverage through licensed and admitted insurance companies acceptable to Byrider Franchising Partners:
- (i) Garage Liability Insurance: $1,000,000 limit per occurre
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 36–40)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, franchisees must maintain Truth-in-Lending Act Insurance with a minimum coverage of $300,000. This insurance is one of several types Byrider requires to protect the franchisee, Byrider Franchising Partners, and customers against various risks. Franchisees must secure this insurance through licensed and admitted insurance companies acceptable to Byrider Franchising Partners.
In addition to the Truth-in-Lending Act Insurance, Byrider mandates other insurance coverages, including Garage Liability Insurance with a $1,000,000 limit per occurrence, State Required Worker's Compensation and Employer's Liability Insurance, All Risks Coverage Insurance, and Cyber Liability Insurance with a $1,000,000 limit per occurrence. Byrider Franchising Partners also recommends an umbrella policy of $1,000,000 over all liability coverage and suggests carrying vehicle Title Errors and Omissions Coverage, Federal Odometer Coverage, Equal Credit Opportunity Act, and Deceptive Sales Practices Coverage, each in the amount of $1,000,000.
For all required insurance coverage, franchisees must name Byrider Franchising Partners and its affiliates as additional insureds and ensure the policies extend to all obligations assumed under the Franchise Agreement. Furthermore, Byrider Franchising Partners must receive at least 30 days' written notice before any policy limits are reduced, coverage is restricted, or the policy is canceled or altered. These requirements ensure that Byrider is protected from potential liabilities arising from the franchisee's operations.