Must the insurance policies for a Cool Binz franchise be licensed in the state where the franchisee is doing business?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
All policies will be written by an insurance company(ies) that is/are licensed in the state in which you are doing business, and that has an A.M. Best rating of "A" or better. Currently, you are not obligated by the terms of this Agreement to purchase your insurance from any specific provider, although we reserve the right to specify the specific provider that you must use in the future.
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, all insurance policies must be written by an insurance company licensed in the state where the franchisee operates their Cool Binz business. Additionally, the insurance company must have an A.M. Best rating of "A" or better.
Cool Binz specifies minimum insurance coverage levels that franchisees must maintain. These include a commercial umbrella liability insurance policy with a limit of at least $2,000,000 per occurrence and in the aggregate, as well as automobile liability insurance with a combined single limit of $1,000,000 for bodily injury and property damage. Franchisees must also maintain statutorily required workers' compensation and employer's liability insurance with limits of at least $1,000,000. Furthermore, Cool Binz requires Bailee's Legal Liability Insurance with a coverage minimum of at least $1,000,000, inland marine insurance with a coverage minimum of at least $250,000, and pollution insurance with a coverage minimum of at least $1,000,000.
Cool Binz may modify the minimum insurance limits and require different or additional kinds of insurance to reflect changes in insurance standards, normal business practices, higher court awards, and other relevant circumstances. Franchisees must ensure that their insurance policies meet the highest amount required by any lease or customer contract. Franchisees must provide Cool Binz with copies of any insurance claims or insurance cancellations within 24 hours and have a 24-hour opportunity to cure any lapses in insurance coverage. Cool Binz also requires at least 30 days prior written notice from the insurance carrier for any cancellation, termination, non-renewal, or material modification of any insurance policy.