What are the minimum coverage limits Cool Binz franchisees must maintain for employer's liability insurance by disease?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
r 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" covera
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 employer's liability insurance with specific minimum coverage limits. The required coverage is at least $1,000,000 by accident, $1,000,000 by disease, and a $1,000,000 policy limit. However, if the state in which the franchisee operates requires a higher minimum limit, the franchisee must adhere to the state's requirement instead.
In certain states recognized as "Monopolistic States" such as Ohio, North Dakota, Washington, Wyoming, and West Virginia, Cool Binz franchisees must also purchase "Stop Gap" coverage separately or add it to their Commercial General Liability (CGL) policy. Specifically, in Ohio, this "Stop Gap" coverage must not include language that excludes coverage for events "substantially certain to occur".
Additionally, Cool Binz requires franchisees to maintain a commercial umbrella liability insurance policy with a limit of at least $2,000,000 per occurrence and in the aggregate. This umbrella policy should list the commercial general liability, automobile liability, and employer's liability policies as scheduled underlying policies. Franchisees must ensure that Cool Binz International, LLC, BELFOR Franchise Group, LLC, and BELFOR USA Group Inc. are named as additional insureds on their policies on a primary and noncontributory basis. The policy must also include a waiver of subrogation endorsement against claims involving Cool Binz International, LLC, BELFOR Franchise Group, LLC, and BELFOR USA Group Inc.