What is the minimum required amount for Umbrella insurance for a Cr3 American Exteriors franchise?
Cr3_American_Exteriors Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type | Minimum Amount | |
|---|---|---|
| Comprehensive General Liability (Policy type: Occurrence; Must be with an Admitted carrier with rating of ≥ A- VII, AM Best and include: waiver of subrogation, primary & non- contributory, contractual liability & independent contractors liability) | $1,000,000 per occurrence, $2,000,000 aggregate; $2,000,000 products/complete operations aggregate; $1,000,000 personal & advertising injury; $50,000 damage to rented premises; $5,000 medical | |
| Commercial Automobile Liability (Must be with a carrier with rating of ≥ A- VII, AM Best and include: owned auto, hired auto, and non-owned auto, and provide for waiver of subrogation and primary & non-contributory coverage) | $1,000,000 each accident; $1,000,000 uninsured; $1,000,000 underinsured (≤ $1,000 comprehensive and collision deductible) | |
| Contractors Errors & Omissions | $1,000,000 per occurrence, $1,000,000 aggregate | |
| (Policy type: Claims Made) | ||
| Workers Compensation | $1,000,000 each accident/incident/employee | |
| (Must be with a carrier with rating of ≥ | ||
| A- VII, AM Best, cannot exclude | ||
| owner-operators, and must include | ||
| waiver of subrogation and must include | ||
| uninsured independent contractors) | ||
| Any other insurance required by federal, state, or local law | ||
| Contractors Pollution Liability | $1,000,000 per occurrence, $1,000,000 aggregate | |
| (Policy type: Claims Made) | ||
| Property /Business Interruption (Must be with a carrier with rating of ≥ A- VII, AM Best) | ≥$10,000, Full replacement cost value per business personal property, full replacement cost value per tenant improvements, ≥ $25,000 business interruption + franchise royalties, full cover equipment | |
| Cyber Liability | $250,000 per occurrence, $250,000 aggregate, $250,000 third party liability | |
| Employment Practices Liability | $250,000 per occurrence, $250,000 aggregate, third party included, ≥ $25,000 wage & hour ($10,000 max deductible) | |
| Umbrella | $1,000,000 per occurrence, $1,000,000 aggregate, underlying general liability |
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 25–29)
What This Means (2025 FDD)
According to Cr3 American Exteriors's 2025 Franchise Disclosure Document, franchisees are required to maintain certain minimum insurance coverages. Specifically, the minimum required amount for Umbrella insurance is $1,000,000 per occurrence and $1,000,000 in aggregate, underlying general liability.
This means that a Cr3 American Exteriors franchisee must secure an umbrella insurance policy that provides coverage up to $1,000,000 for each incident and an overall coverage of $1,000,000 for all incidents combined during the policy term. This umbrella policy acts as an additional layer of protection on top of the general liability insurance, providing extra financial security in case of large claims or lawsuits.
It is important for prospective franchisees to factor in the cost of this insurance coverage when evaluating the overall investment and operating expenses of a Cr3 American Exteriors franchise. They should also confirm with the franchisor any specific requirements regarding the insurance carrier and policy terms to ensure compliance.