What is the recommended amount for the Umbrella policy for a Byrider franchise, if purchased?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
000;
- (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, while not required, it is recommended that franchisees purchase an Umbrella policy with a limit of $1,000,000. This Umbrella policy would provide coverage above and beyond the limits of the other liability insurance policies the franchisee is required to maintain.
Purchasing an Umbrella policy can provide an extra layer of financial protection for a Byrider franchise. Should a claim exceed the limits of the franchisee's other liability policies (such as Garage Liability or Cyber Liability), the Umbrella policy would kick in to cover the excess, up to its $1,000,000 limit. This can be particularly important in situations involving significant damages or legal settlements.
While the Umbrella policy is not mandatory, Byrider franchisees should carefully consider the potential benefits of this additional coverage in light of their individual risk tolerance and financial situation. Franchisees may also want to consult with an insurance professional to determine the appropriate level of coverage for their specific needs.