What is the minimum coverage amount required for Inland Marine Insurance for Cool Binz franchisees?
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 obtain and maintain Inland Marine Insurance with a minimum coverage of at least $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 be greater than this minimum.
This means that a Cool Binz franchisee needs to assess the value of the goods they are transporting as part of their business operations. If the value of these goods exceeds $250,000, the franchisee is obligated to secure a higher coverage limit to adequately protect against potential losses. The franchisee is responsible for investigating and determining the appropriate coverage for their specific Cool Binz business.
It is important for prospective Cool Binz franchisees to consult with an insurance agent to determine the appropriate level of Inland Marine Insurance coverage based on their individual circumstances. This will ensure they are adequately protected against potential losses and meet the franchisor's requirements. Failing to maintain adequate insurance coverage could result in a breach of the franchise agreement.