Is a Cool Binz franchisee currently obligated to purchase insurance from a specific provider?

According to the 2025 Cool Binz Franchise Disclosure Document, franchisees are not currently required to purchase insurance from a specific provider. However, Cool Binz retains the right to mandate a specific insurance provider in the future. All insurance policies must be written by a company licensed in the state where the franchisee operates and have an A.M. Best rating of "A" or better.

Cool Binz franchisees are required to maintain several types of insurance coverage, including a commercial umbrella liability policy with a limit of at least $2,000,000 per occurrence and in the aggregate. This policy must list commercial general liability, automobile liability, and employers' liability policies as underlying policies. Additionally, franchisees must secure insurance for bodily injury, property damage, and personal and advertising injury, with specific limits for general aggregate ($2,000,000), products and completed operations aggregate ($2,000,000), personal and advertising injury ($1,000,000), and per occurrence ($1,000,000).

Cool Binz also requires franchisees to maintain automobile liability insurance with a combined single limit of $1,000,000 for bodily injury and property damage, as well as statutorily required workers' compensation and employer's liability insurance with limits of at least $1,000,000 per accident, $1,000,000 per disease, and $1,000,000 policy limit. Furthermore, franchisees need to obtain Bailee's Legal Liability Insurance with a minimum coverage of $1,000,000 or the value of the goods in their possession, whichever is greater, inland marine insurance with a minimum coverage of $250,000, and pollution insurance with a minimum coverage of $1,000,000. Customers will be required to purchase contents insurance and insurance for damage to the Cool Binz containers from Storage Protectors, an approved vendor.

Cool Binz must be named as an additional insured on all general liability insurance policies, and the policies must provide at least 30 days' notice of any intent to cancel or materially alter the policy. Franchisees must provide Cool Binz with copies or certificates of insurance before attending training, commencing operations, whenever a change is made to the policy, and before the expiration of any coverage. Failure to maintain the required insurance coverage can result in Cool Binz obtaining insurance on the franchisee's behalf, with the franchisee responsible for all costs and premiums.