What is the minimum personal and advertising injury 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 are required to maintain a commercial umbrella liability insurance policy with a minimum personal and advertising injury limit of $1,000,000. This insurance coverage must be in effect throughout the term of the Franchise Agreement. Additionally, Cool Binz can modify the required insurance types and amounts as they deem appropriate.
Cool Binz franchisees must secure this insurance before attending the Initial Training Program. The policy protects the franchisee, their employees, Cool Binz, its officers, and its employees against various potential liabilities, including personal injury, death, and property damage, arising from the operation and promotion of the Cool Binz business. The insurance company providing the policy must be licensed in the state where the franchisee operates and have an A.M. Best rating of "A" or better.
It is the franchisee's responsibility to evaluate whether the minimum coverage amounts are adequate for their specific needs. The FDD states that the minimums are not necessarily reflective of the actual needs a franchisee may have. Franchisees should consider factors such as their location, the scale of their operations, and their risk tolerance when determining appropriate coverage levels.
Cool Binz 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 franchisee must provide Cool Binz with proof of insurance at least ten days before training, before commencing operations, whenever changes are made to the policy, and before the expiration of any coverage.