Does Cool Binz require franchisees to provide documentation of their workers' compensation and employer's liability insurance?
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. You are required to obtain and maintain inland marine insurance with a coverage minimum of at least $250,000. Depending on the value of the contents your COOL BINZ Business is transporting, coverages may need to be greater than the minimum.
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, franchisees are required to maintain statutorily required workers' compensation insurance and employer's liability insurance with limits of at least $1,000,000 per accident, $1,000,000 per disease, and a $1,000,000 policy limit, or the minimum limit required by their state, whichever is higher. The policy must include a waiver of subrogation endorsement regarding claims against Cool Binz International, LLC, BELFOR Franchise Group, LLC, and BELFOR USA Group Inc. In monopolistic states like Ohio, North Dakota, Washington, Wyoming, and West Virginia, "Stop Gap" coverage must be purchased separately or added to the Commercial General Liability (CGL) policy. In Ohio, the "Stop Gap" coverage must not contain an exclusion with the "substantially certain to occur" language.
Cool Binz also specifies that franchisees must provide a current certificate of insurance to Cool Binz, BELFOR USA Group Inc., and/or BELFOR Franchise Group, LLC, as required in Section 7.C of the Franchise Agreement. Failure to maintain the required minimum levels of insurance, failure to name Cool Binz and related entities as additional insured, or failure to provide a current certificate of insurance can result in the termination of the Franchise Agreement. However, Cool Binz will not terminate the agreement if the franchisee immediately ceases operating the Cool Binz business and obtains the required insurance within ten days after receiving written notice.
In addition to workers' compensation and employer's liability insurance, Cool Binz requires franchisees to maintain other types of insurance, including commercial umbrella liability insurance, automobile liability insurance, bailee's legal liability insurance, inland marine insurance, pollution insurance, and container and contents insurance. Franchisees must also comply with any state, county, local, or other municipal insurance requirements and any other insurance policies Cool Binz may require. All insurance policies must be written by an insurance company licensed in the state where the franchisee operates and have an A.M. Best rating of "A" or better.