Are the insurance policy amounts provided by Craters & Freighters the minimum requirements?

According to Craters & Freighters's 2025 Franchise Disclosure Document, the insurance policy amounts specified are the minimum requirements. Craters & Freighters requires franchisees to maintain certain insurance policies, including commercial general liability coverage, umbrella coverage, automobile liability, and workers' compensation. The commercial general liability coverage must include specific limits such as a $2,000,000 general aggregate, $1,000,000 for each occurrence, and $2,000,000 for products-completed operations aggregate.

In addition to the general liability coverage, franchisees must also maintain umbrella coverage with a minimum limit of $1,000,000 per occurrence, automobile liability with a minimum limit of $1,000,000 comprehensive per occurrence on all hired, owned, and non-owned vehicles, and workers compensation coverage that complies with state law and includes limits of $1,000,000 for each accident, $1,000,000 for disease per employee, and $1,000,000 for the disease policy limit.

Craters & Freighters emphasizes that these are minimum requirements and strongly recommends that franchisees consult with a licensed insurance agent or broker to identify and obtain additional insurance coverage. This additional coverage may include, but is not limited to, warehouse storage and cyber insurance coverage, ensuring that the Franchised Business is adequately protected against various potential risks. Franchisees should carefully assess their specific needs and risks in consultation with insurance professionals to determine the appropriate level of coverage beyond the minimums set by Craters & Freighters.