What are the requirements for the insurance policies that Cool Binz franchisees must procure and maintain?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
You must procure, maintain and provide from our approved vendors, liability and other insurance policies for your trucks and your COOL BINZ Business as described in the Franchise Agreement.
These costs will increase if you operate more than one Territory or if you choose to accept and perform National Account work.
See Item 8 of this Disclosure Document for more information regarding our insurance requirements.
Your truck lease may require higher limits or additional coverages.
Each specified policy of insurance must meet the following requirements: (a) the policy must name us, BELFOR USA Group, Inc., and BELFOR Franchise Group, LLC (and any of our affiliates that we reasonably specify) as an additional insured; (b) the policy must not be subject to cancellation, modification or amendment except after 30 days written notice to us; (c) the insurance must be placed with an approved vendor and an insurance carrier with an AM Best's Rating of not less than A; and (d) the policy must provide that failure by you to comply with any term, condition or provision of the insurance contract, or other conduct by you, will not void or otherwise affect the coverage afforded us.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 27–31)
What This Means (2025 FDD)
According to the 2025 Cool Binz Franchise Disclosure Document, franchisees must obtain and maintain liability and other insurance policies for their trucks and Cool Binz business. These policies must be secured from vendors approved by Cool Binz. The costs for these policies may increase if a franchisee operates in more than one territory or chooses to perform National Account work. Furthermore, truck leases may stipulate higher coverage limits or additional types of coverage. The estimated initial investment for insurance deposits and premiums ranges from $10,200 to $17,850, payable as required by the insurance provider, with a minimum requirement of annual payments before opening.
Each insurance policy must adhere to specific requirements. Cool Binz, BELFOR USA Group, Inc., and BELFOR Franchise Group, LLC (along with any other affiliates Cool Binz specifies) must be named as additional insured parties. The policies cannot be canceled, modified, or amended without providing Cool Binz with 30 days' written notice. The insurance carrier must have an AM Best's Rating of not less than A. Additionally, the policy must state that any failure by the franchisee to comply with the terms of the insurance contract or any other conduct will not void or otherwise affect the coverage provided to Cool Binz.
Prospective Cool Binz franchisees should carefully review these insurance requirements and factor the potential costs into their initial investment. It is important to understand that Cool Binz has the right to change these requirements at their discretion. Franchisees should also confirm that their chosen insurance vendor is approved by Cool Binz and meets the specified AM Best's rating. Understanding these insurance obligations is crucial for protecting both the franchisee's business and Cool Binz's interests.