What minimum insurance amounts are currently required for a Christian Brothers Automotive franchise?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
Presently we require you to maintain the following minimum insurance amounts: (1) worker's compensation and employer's liability insurance, as well as any other insurance required by law; (2) comprehensive general liability insurance with limits of at least $1,000,000 per occurrence, and $2,000,000 general aggregate, including the following coverages: personal injury, employment practices, employee dishonesty, products/completed operations, and terrorism, among other coverages; (3) property insurance with limits based upon valuation and square footage, including building value, contents value, business income, data protection, valuable papers, equipment breakdown, employee tools, increased cost of construction and wind, hail, flood and earth movement (if required in your area); (4) automobile liability insurance, including owned, non-owned, and hired vehicle coverage, with at least $1,000,000 combined single limit; (5) excess liability coverage over general liability, property, automobile liability, and employer's liability, with at least $3,000,000 per occurrence; and (6) garage keepers liability insurance in the amount of at least $300,000.
ITEM 9. FRANCHISEE'S OBLIGATIONS
This table lists your principal obligations under the franchise and other agreements. It will help you find more detailed information about your obligations in these agreements and in other items of this Disclosure Document.
| Obligation | Section in Agreement | Disclosure Document Item |
|---|---|---|
| a. Site selection and acquisition or lease | Sections 2.01 to 2.04, 9.05, 10.22 and Exhibit C of the Franchise Agreement; Commercial Sub-Lease Agreement | Items 7, 8 and 12 |
| b. Pre-opening purchases and leases | Section 8.06, 9.05, 10.02 of the Franchise Agreement; Commercial Sub-Lease Agreement | Items 6, 7 and 8 |
| c. Site development and other pre-opening requirements | Sections 8.06, 9.05 and 10.23 of the Franchise Agreement | Items 6, 7, 8 and 11 |
| d. Initial and ongoing training | Sections 4.03, 9.03, 9.05, 9.06, 10.05, 10.18. 10.24 and 10.25 of the Franchise Agreement; |
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 33–36)
What This Means (2025 FDD)
According to the 2025 Christian Brothers Automotive Franchise Disclosure Document, franchisees must maintain several types of insurance with specific minimum coverage amounts. These requirements are designed to protect both the franchisee and Christian Brothers Automotive from potential financial risks.
The required insurance includes: worker's compensation and employer's liability insurance as mandated by law; comprehensive general liability insurance with limits of at least $1,000,000 per occurrence and $2,000,000 general aggregate, covering personal injury, employment practices, employee dishonesty, products/completed operations, and terrorism; property insurance with limits based on valuation and square footage, covering building value, contents value, business income, data protection, valuable papers, equipment breakdown, employee tools, increased cost of construction, and potential wind, hail, flood, and earth movement; automobile liability insurance with at least $1,000,000 combined single limit, including owned, non-owned, and hired vehicle coverage; excess liability coverage over general liability, property, automobile liability, and employer's liability, with at least $3,000,000 per occurrence; and garage keepers liability insurance in the amount of at least $300,000.
Christian Brothers Automotive must be named as an additional insured on all policies, and the policies must provide at least 30 days' written notice before any termination, amendment, cancellation, or modification. Franchisees are responsible for all costs associated with obtaining and maintaining the required insurance coverage. Franchisees must provide certificates of insurance and copies of the underlying policies to Christian Brothers Automotive promptly, no later than the day after major equipment or lifts are delivered, and whenever any coverage is renewed or replaced.