Is a Cool Binz franchisee required to maintain employer's liability insurance?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
r leased vehicles and for hired and non-owned motor vehicles. Additionally, uninsured motorist and under-insured motorist coverage will be equal to the CSL.
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- Workers' Compensation and Employers' Liability. Statutorily required workers' compensation insurance and employer's liability insurance shall be maintained with limits of at least $1,000,000 by accident, $1,000,000 by disease and $1,000,000 policy limit; or the minimum limit required by your state, whichever is higher. Such policy shall contain a waiver of subrogation endorsement as to claims against Cool Binz International, LLC, BELFOR Franchise Group, LLC and BELFOR USA Group Inc. In "Monopolistic States", such as Ohio, North Dakota, Washington, Wyoming and West Virginia, "Stop Gap" covera
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, franchisees are required to maintain employer's liability insurance. Specifically, franchisees must have statutorily required workers' compensation insurance and employer's liability insurance with limits of at least $1,000,000 per accident, $1,000,000 by disease, and a $1,000,000 policy limit.
However, the FDD also states that if the minimum limit required by the franchisee's state is higher than $1,000,000, the franchisee must adhere to the state's minimum limit. The policy must also contain a waiver of subrogation endorsement regarding claims against Cool Binz International, LLC, BELFOR Franchise Group, LLC, and BELFOR USA Group Inc.
For franchisees operating in "Monopolistic States" such as Ohio, North Dakota, Washington, Wyoming, and West Virginia, "Stop Gap" coverage must be purchased separately or added to the Commercial General Liability (CGL) policy. In Ohio, the "Stop Gap" coverage must not contain an exclusion with the "substantially certain to occur" language. Franchisees must ensure they meet these specific requirements to maintain compliance with Cool Binz's insurance obligations.