What is the minimum employer's liability insurance policy limit for a Cool Binz franchise?
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" 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.
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 minimum limits. Specifically, the policy must have limits of at least $1,000,000 per accident, $1,000,000 per disease, and a $1,000,000 policy limit. However, if the state where the franchisee operates requires higher limits, the franchisee must adhere to the state's minimum requirements instead.
Cool Binz also requires that the workers' compensation and employer's liability insurance policy includes a waiver of subrogation endorsement. This waiver protects Cool Binz International, LLC, BELFOR Franchise Group, LLC, and BELFOR USA Group Inc. from claims. In certain states, identified as "Monopolistic States" such as Ohio, North Dakota, Washington, Wyoming, and West Virginia, franchisees must purchase "Stop Gap" coverage separately or add it to the Commercial General Liability (CGL) policy. For Ohio specifically, the "Stop Gap" coverage must not exclude language related to events "substantially certain to occur".
In addition to the specific employer's liability coverage, Cool Binz mandates that franchisees 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 provide Cool Binz with proof of insurance coverage and premium payments before commencing operations, when changes are made to the policy, and before the expiration of any insurance coverage. Failure to maintain the required insurance levels can lead to the franchisor obtaining insurance on the franchisee's behalf, with the franchisee responsible for all associated costs and premiums.