What are the insurance requirements for a Cool Binz franchisee to avoid termination?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
You fail to acquire or continuously maintain the required minimum levels of insurance, fail to have us, BELFOR USA Group Inc. and/or BELFOR Franchise Group, LLC named as an additional insured, or fail to provide a current certificate of insurance to us as required in Section 7.C of this Agreement.
However, we will not exercise our right to terminate this Agreement if upon receipt of notice from us, you immediately cease operating the COOL BINZ Business and obtain such insurance within ten (10) days after written notice is delivered to you prior to resuming operation;
At least ten (10) days before attending Business Manager and Technical Operations Training, commencing the operation of the COOL BINZ Business, whenever a change is made to your policy, and before expiration of any insurance coverage, you must have your insurance provider send us a copy or certificate or other acceptable proof of such insurance. If you do not maintain the required insurance coverage, or do not furnish us with satisfactory evidence of insurance coverage and premium payments, we may obtain, at our sole option and in addition to our other rights and remedies under this Agreement, any required insurance coverage on your behalf. We are under no obligation whatsoever to obtain such insurance, but if we do so, you must fully cooperate with us in our efforts and must promptly sign all forms required to obtain or maintain the insurance. You must also allow any inspections of your COOL BINZ Business required to obtain or maintain the insurance. Finally, you must pay us, on demand, any costs and premiums we incur in obtaining insurance on your behalf. Neither your obligation to maintain insurance coverage nor our maintenance of insurance on your behalf will reduce or absolve you of any obligations of indemnification described in this Agreement. You must promptly report all material claims, or potential claims, against you, any Indemnified Party or us, to the insurer and to us.
You may not commence your COOL BINZ Business until you have provided the certificates of insurance or other acceptable proof of all insurances. You may not reduce the policy limits, restrict coverage, cancel, or otherwise alter or amend any insurance policy without our written consent.
You must provide us with copies of any insurance claims or insurance cancellations within 24 hours. You have a 24-hour opportunity to cure any lapses in insurance coverage. No insurance policy must be subject to cancellation, termination, non-renewal or material modification, except upon at least 30 days prior written notice from the insurance carrier to us. We have the right to increase or otherwise modify the minimum insurance requirements upon 30 days prior written notice to you, and you shall comply with any such modification within the time specified in said notice.
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- Automobile Liability Insurance. You shall maintain insurance with a combined single limit, CSL, of $1,000,000 for bodily injury and property damage for all owned or 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" coverage must be purchased separately or added to the CGL policy. "Stop Gap" in Ohio must not contain exclusion with the "substantially certain to occur" language.
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- Bailee's Legal Liability. You are required to obtain and maintain Bailee Legal 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 is transporting, coverages may need to be greater than the minimum. You are required to investigate what coverage is appropriate for your COOL BINZ Business.
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- Pollution Insurance. You are required to obtain and maintain pollution insurance with a coverage minimum of at least $1,000,000.
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- Container and Contents Insurance. Your customers will be required to purchase contents insurance and insurance for damage to the COOL BINZ containers. You may only use our approved vendor for this insurance, which may be modified from time to time in our sole discretion. Currently, the vendor is Storage Protectors.
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, maintaining the required insurance coverage is crucial for franchisees to avoid potential termination of their franchise agreement. Specifically, failure to acquire or continuously maintain the minimum required insurance levels, neglecting to name Cool Binz International, BELFOR USA Group Inc., and/or BELFOR Franchise Group, LLC as additional insured parties, or not providing current certificates of insurance can lead to termination. However, Cool Binz will provide an opportunity to cure the deficiency. If a franchisee ceases operations immediately upon notice and obtains the necessary insurance within ten days of written notice, Cool Binz will not exercise its right to terminate the agreement.
Cool Binz franchisees must ensure their insurance provider sends a copy or certificate of insurance to Cool Binz at least ten days before attending Business Manager and Technical Operations Training, before commencing business operations, whenever a policy change occurs, and before any insurance coverage expires. Franchisees cannot commence their Cool Binz Business until they provide proof of all required insurances. They also cannot reduce policy limits, restrict coverage, cancel, or alter any insurance policy without Cool Binz's written consent. Franchisees must provide copies of any insurance claims or cancellations within 24 hours and have a 24-hour opportunity to cure any lapses in coverage. Insurance policies must provide at least 30 days' prior written notice to Cool Binz before cancellation, termination, non-renewal, or material modification. Cool Binz retains the right to modify the minimum insurance requirements with 30 days' prior written notice, and franchisees must comply within the specified timeframe.
The required insurance coverage includes several specific types and minimum coverage amounts. Franchisees must maintain automobile liability insurance with a combined single limit (CSL) of $1,000,000 for bodily injury and property damage, covering all owned, leased, hired, and non-owned vehicles. Uninsured and under-insured motorist coverage must equal the CSL. Workers' compensation and employer's liability insurance must be maintained with limits of at least $1,000,000 per accident, $1,000,000 per disease, and a $1,000,000 policy limit, or the minimum required by the state, whichever is higher. A waiver of subrogation endorsement is required for claims against Cool Binz International, LLC, BELFOR Franchise Group, LLC, and BELFOR USA Group Inc. In monopolistic states like Ohio, North Dakota, Washington, Wyoming, and West Virginia, "Stop Gap" coverage must be purchased separately or added to the Commercial General Liability (CGL) policy. Bailee's Legal Liability Insurance is required with a minimum coverage of $1,000,000 or the value of the goods in possession, whichever is greater. Inland marine insurance must have a minimum coverage of $250,000, with franchisees responsible for determining if higher coverage is needed based on the value of transported contents. Pollution insurance is required with a minimum coverage of $1,000,000. Finally, customers must purchase contents insurance and insurance for damage to the Cool Binz containers through Cool Binz's approved vendor, currently Storage Protectors.
Failure to meet these comprehensive insurance requirements constitutes a default under the franchise agreement, potentially leading to termination if not promptly addressed. Prospective franchisees should carefully review these requirements and ensure they can secure and maintain the necessary coverage to remain compliant with the Cool Binz franchise agreement.