What are the insurance requirements for Cool Binz franchisees, and what happens if they are not met?
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.
Our current requirements are described below:
- Umbrella Policy and Commercial General Liability Insurance. You shall maintain a commercial umbrella liability insurance policy with a limit of at least $2,000,000 per occurrence and in the aggregate and shall list the commercial general liability, automobile liability and employers' liability policies as scheduled underlying policies. You shall maintain insurance for "bodily injury," "property damage," and "personal and advertising injury" with no exclusion or limitation applying to the products/completed operations liability coverage. Limits shall be at least $2,000,000 general aggregate, $2,000,000 products and completed operations aggregate, $1,000,000 personal and advertising injury limit, and $1,000,000 per occurrence limit. Contractual liability coverage including the assumed personal
injury endorsement shall be included to cover the indemnity provisions of this Agreement. The exclusion for employer's liability shall not apply to claims for covered contractually assumed liability claims. Cool Binz International, LLC, BELFOR Franchise Group, LLC, and BELFOR USA Group Inc. shall be named as an additional insured on such policy on a primary and noncontributory basis with a Grantor of Franchise Form CG2029 or an insurer's comparable form. Such policy shall also contain a waiver of subrogation endorsement as to claims against Cool Binz International, LLC, BELFOR Franchise Group, LLC, and BELFOR USA Group Inc.
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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.
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.
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;
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, franchisees must maintain several types of insurance with specific minimum coverage levels. These include a commercial umbrella liability insurance policy with a limit of at least $2,000,000 per occurrence and in the aggregate, commercial general liability insurance with limits of at least $2,000,000 general aggregate, $2,000,000 products and completed operations aggregate, $1,000,000 personal and advertising injury limit, and $1,000,000 per occurrence limit. Additionally, franchisees need automobile liability insurance with a combined single limit of $1,000,000, workers' compensation and employer's liability insurance with limits of at least $1,000,000, bailee's legal liability insurance with a minimum of $1,000,000, inland marine insurance with a minimum of $250,000, and pollution insurance with a minimum of $1,000,000. Franchisees must also ensure customers purchase contents insurance and insurance for damage to the Cool Binz containers through Cool Binz's approved vendor.
The insurance policies must be written by companies licensed in the state where the franchisee operates and have an A.M. Best rating of "A" or better. Cool Binz, BELFOR Franchise Group, LLC, and BELFOR USA Group Inc. must be named as additional insureds on the general liability policies. Franchisees must provide Cool Binz with copies or certificates of insurance before starting operations, whenever changes are made to the policy, and before the expiration of any coverage. Cool Binz retains the right to modify the minimum insurance requirements with 30 days' notice.
If a Cool Binz franchisee fails to maintain the required insurance coverage or provide satisfactory evidence of coverage, Cool Binz has the option to obtain the necessary insurance on the franchisee's behalf. The franchisee is responsible for fully cooperating with Cool Binz and promptly paying all costs and premiums incurred. Failure to acquire or maintain the required insurance, name Cool Binz as an additional insured, or provide a current certificate of insurance can lead to termination of the Franchise Agreement. However, Cool Binz will not terminate the agreement if the franchisee ceases operations immediately and obtains the required insurance within ten days after receiving written notice.
It is important for prospective Cool Binz franchisees to discuss their insurance needs with an agent and financial advisor to determine if additional coverage beyond the minimum requirements is necessary. Franchisees must also comply with any state, county, local, or other municipal insurance requirements. Staying compliant with these insurance requirements is crucial for protecting the franchisee's business and maintaining a good standing with Cool Binz.