What is the Cool Binz franchisee's obligation regarding the appropriate coverage for Inland Marine Insurance?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
egal Liability Insurance with a coverage minimum of at least $1,000,000 or a value equal to the value of the goods in your possession, whichever is greater.
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- Inland Marine Insurance. You are required to obtain and maintain inland marine insurance with a coverage minimum of at least $250,000. Depending on the value of the contents your COOL BINZ Business
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, franchisees must secure and maintain inland marine insurance with a minimum coverage of $250,000. However, the FDD stipulates that depending on the value of the contents the Cool Binz business is transporting, the required coverage may need to exceed this minimum.
Therefore, it is the franchisee's responsibility to investigate and determine the appropriate level of inland marine insurance coverage necessary for their specific Cool Binz business operations. This involves assessing the value of the goods being transported and ensuring that the insurance coverage adequately protects against potential losses or damages during transit.
This requirement places the onus on the franchisee to conduct due diligence and consult with insurance professionals to ascertain the appropriate coverage level. While Cool Binz sets a minimum threshold, franchisees must proactively evaluate their individual needs and secure coverage that aligns with the actual risks associated with their business activities.