What is the minimum vehicle liability coverage required for a Chem-Dry franchise?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
damage), with the proper graphics package.
CDI has negotiated with an insurance broker to provide insurance coverage to you according to our specifications at a discounted rate. You are not required to use this insurance broker; however, you must obtain and maintain the following minimum business liability coverage as well as vehicle liability coverage as a condition for receiving or maintaining a franchise:
- The minimum amount of business (general) liability coverage required is $1,000,000 per occurrence.
- The minimum amount of $100,000/$400,000/$75,000 (or $500,000 Combined Single Limit) is required for the vehicle liability coverage. All non-owned or hired vehicles must be insured with the same limits.
- CDI, its parents, and BFG National Accounts (and their officers, directors, employees, agents and affiliates and subsidiaries) must be named as additional insureds on both the General Liability and Vehicle Liability insurance policies.
- The business liability insurance policy must state that the work product is covered at a minimum of $50,000 per occurrence, or that there is no "workmanship" or "care, custody, and control" exclusion.
- You must also have Workers Compensation insurance based on statutory requirements.
You must submit to us an acceptable Certificate of Insurance for the Business, any vehicles used in the business and the workers compensation coverage required in your state within 30 days after you and we sign the Franchise Agreement and then annually prior to the expiration of your insurance coverage showing renewal or replacement with coverage conforming to our insurance requirements and the proper additional insureds.
You may obtain additional insurance coverages and higher limits for your Chem-Dry Business in your discretion. You may be required to obtain additional coverage before yo
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 31–33)
What This Means (2024 FDD)
According to Chem-Dry's 2024 Franchise Disclosure Document, franchisees must maintain minimum vehicle liability coverage as a condition of receiving or maintaining their franchise. The minimum required coverage is $100,000/$400,000/$75,000, or $500,000 Combined Single Limit. This coverage extends to all non-owned or hired vehicles used in the Chem-Dry business, ensuring comprehensive protection. Chem-Dry, its parents, and BFG National Accounts (and their officers, directors, employees, agents and affiliates and subsidiaries) must be named as additional insureds on the vehicle liability insurance policies.
Chem-Dry has negotiated with an insurance broker to provide insurance coverage according to their specifications at a discounted rate. While franchisees are not required to use this specific broker, they must meet the minimum coverage requirements outlined by Chem-Dry. Franchisees are also obligated to submit an acceptable Certificate of Insurance for all vehicles used in the business within 30 days of signing the Franchise Agreement, and annually thereafter, to demonstrate compliance with these insurance requirements.
In addition to vehicle liability coverage, Chem-Dry franchisees must also maintain business (general) liability coverage of $1,000,000 per occurrence, and workers compensation insurance based on statutory requirements. The business liability insurance policy must state that the work product is covered at a minimum of $50,000 per occurrence, or that there is no "workmanship" or "care, custody, and control" exclusion. Franchisees have the option to obtain additional insurance coverages and higher limits for their Chem-Dry business at their discretion, and may be required to obtain additional coverage before offering some of the Additional Services.