What is the minimum coverage required for Bailee's Legal Liability Insurance for a Cool Binz franchise?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
e 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
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 Bailee's Legal Liability Insurance. The minimum coverage required is $1,000,000, or an amount equal to the value of the goods in the franchisee's possession, whichever is greater.
This type of insurance protects the Cool Binz franchisee against liability for loss or damage to customers' goods while those goods are in the franchisee's care, custody, or control. This is a standard requirement for businesses that temporarily store or transport customer property. The "whichever is greater" clause means that if a franchisee is storing goods worth more than $1,000,000, they must increase their coverage to match that value.
Cool Binz also specifies that all insurance policies must be written by a company licensed in the state where the franchisee operates and have an A.M. Best rating of "A" or better. While franchisees are not currently obligated to purchase insurance from a specific provider, Cool Binz reserves the right to specify a provider in the future. Franchisees must provide Cool Binz with proof of insurance coverage before commencing operations and must maintain continuous coverage throughout the term of the franchise agreement.