What is the minimum general aggregate limit required for the commercial umbrella liability insurance policy for a Cool Binz franchise?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
Insurance
Before attending the Initial Training Program, you must purchase and maintain in full force and effect throughout the term of the Franchise Agreement and at your expense, insurance protecting you, your employees, and us, our officers, and our employees, against loss, liability, fire, personal injury, death, property damages, or theft arising from, or occurring in connection with, the operation and promotion of the COOL BINZ Business as specified in detail in the Franchise Agreement or otherwise in writing from us, including, but not limited to, a commercial umbrella liability insurance policy with a limit 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, automobile liability insurance with a combined single limit of at least $1,000,000, workers' compensation and employers' liability insurance, Bailee insurance, inland marine insurance, pollution insurance and any other insurance as required by any state, county, local, or other municipal insurance requirements. You are required to use our approved vendor, Storage Protectors, as the supplier of container and contents insurance purchased by customers. We may modify the types and amounts of insurance you are required to purchase as we deem appropriate in our reasonable discretion. You acknowledge and agree that (a) the insurance you will maintain reflects the minimum amounts of coverage we require, (b) these minimums are not meant to reflect the actual needs you may have, and (c) it is your responsibility to carefully evaluate if these minimums will adequately meet
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 31–34)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, franchisees must maintain a commercial umbrella liability insurance policy with a minimum general aggregate limit of $2,000,000. This insurance coverage is required to protect the franchisee, their employees, Cool Binz, its officers, and its employees against potential losses, liabilities, and damages related to the operation and promotion of the Cool Binz business. The policy must remain in effect throughout the term of the Franchise Agreement.
In addition to the general aggregate limit, the commercial umbrella liability insurance policy must also include a $2,000,000 products and completed operations aggregate, a $1,000,000 personal and advertising injury limit, and a $1,000,000 per occurrence limit. Franchisees are also required to obtain automobile liability insurance with a combined single limit of at least $1,000,000, workers' compensation and employers' liability insurance, Bailee insurance, inland marine insurance, pollution insurance, and any other insurance required by state, county, local, or municipal regulations.
Cool Binz specifies that all insurance policies must be written by insurance companies 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 designate a specific provider in the future. The FDD emphasizes that the required insurance amounts are minimums and that franchisees are responsible for evaluating whether these minimums adequately meet their needs.
Cool Binz also requires that all general liability insurance policies name Cool Binz, BELFOR Franchise Group, LLC, BELFOR USA Group Inc., and their designated affiliates, employees, officers, and directors as additional insureds. The policies must not limit coverage if a claim is made by any of the Indemnified Parties and must extend to all obligations assumed by the franchisee. Cool Binz must receive at least 30 days' notice of any intent to cancel or materially alter any policy. Franchisees must provide proof of insurance to Cool Binz at least ten days before attending training, commencing operations, whenever a change is made to the policy, and before the expiration of any coverage.