What is the minimum coverage required in aggregate for the cyber insurance policy that a Cicis franchisee must maintain?

According to Cicis's 2025 Franchise Disclosure Document, franchisees are required to maintain a cyber insurance policy with specific coverage limits. The minimum requirement for this policy is $500,000 per occurrence and $500,000 in aggregate. This insurance is intended to protect both the franchisee and Cicis from potential financial losses resulting from cyber incidents.

Maintaining adequate cyber insurance is crucial in today's business environment, given the increasing frequency and sophistication of cyberattacks. This coverage helps to mitigate the financial impact of data breaches, ransomware attacks, and other cybercrimes that could disrupt business operations and compromise sensitive customer data. For a Cicis franchisee, this means having a financial safety net to cover expenses such as data recovery, legal fees, customer notifications, and potential fines or penalties.

Cicis also retains the right to modify the required insurance coverage amounts or require different or additional insurance coverages at any time to reflect inflation, identification of new risks, changes in the Laws or liability, higher damage awards or other relevant changes in circumstances. Franchisees must also name Cicis and any affiliates they designate as additional named insureds, using a form of endorsement that Cicis has approved, and provide for 30 days' prior written notice to Cicis of a policy's material modification, cancellation or expiration.

It is the franchisee's responsibility to determine if the minimum coverage is sufficient to protect their interests and to acquire any additional coverages they believe are necessary. Cicis is not responsible if the franchisee sustains losses that exceed their insurance coverage under any circumstances.