Who must Cool Binz franchisees name as additional insured on their insurance policies?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
You must procure, maintain and provide from our approved vendors, liability and other insurance policies for your trucks and your COOL BINZ Business as described in the Franchise Agreement.
These costs will increase if you operate more than one Territory or if you choose to accept and perform National Account work.
See Item 8 of this Disclosure Document for more information regarding our insurance requirements.
Your truck lease may require higher limits or additional coverages.
Each specified policy of insurance must meet the following requirements: (a) the policy must name us, BELFOR USA Group, Inc., and BELFOR Franchise Group, LLC (and any of our affiliates that we reasonably specify) as an additional insured; (b) the policy must not be subject to cancellation, modification or amendment except after 30 days written notice to us; (c) the insurance must be placed with an approved vendor and an insurance carrier with an AM Best's Rating of not less than A; and (d) the policy must provide that failure by you to comply with any term, condition or provision of the insurance contract, or other conduct by you, will not void or otherwise affect the coverage afforded us.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 27–31)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, franchisees are required to secure and maintain liability and other insurance policies for their trucks and Cool Binz business. These policies must name Cool Binz, BELFOR USA Group, Inc., and BELFOR Franchise Group, LLC (along with any other affiliates that Cool Binz reasonably specifies) as additional insured parties.
This requirement ensures that Cool Binz and its related entities are protected from potential liabilities arising from the franchisee's operations. It's a common practice in franchising to include the franchisor as an additional insured on the franchisee's insurance policies to mitigate risks and ensure comprehensive coverage.
Furthermore, the insurance policy must not be subject to cancellation, modification, or amendment without providing Cool Binz with 30 days' written notice. The insurance must be placed with an approved vendor and an insurance carrier with an AM Best's Rating of not less than A. The policy must also stipulate that any failure by the franchisee to comply with the terms of the insurance contract will not void or otherwise affect the coverage afforded to Cool Binz.