What is the minimum comprehensive per occurrence limit for automobile liability coverage required for all hired, owned, and non-owned vehicles used in a Craters & Freighters franchise?

According to Craters & Freighters' 2025 Franchise Disclosure Document, franchisees are required to maintain automobile liability insurance with a minimum limit of $1,000,000 comprehensive per occurrence. This coverage must apply to all hired, owned, and non-owned vehicles used in the Craters & Freighters business.

This requirement means that a franchisee's insurance policy must cover at least $1,000,000 in damages for each incident involving a vehicle used for the business, regardless of whether the vehicle is owned by the franchisee, hired/rented, or a non-owned vehicle (such as an employee's personal vehicle used for business purposes). This is a standard practice in franchising to protect both the franchisee and the franchisor from significant financial losses due to accidents.

Craters & Freighters also advises franchisees to consult with a licensed insurance agent or broker to determine if additional coverage is necessary for their specific business needs. While the FDD specifies minimum coverage requirements, franchisees should assess their individual risk exposure and consider higher coverage limits to adequately protect their assets and business operations. This is especially important considering the potential for high-value shipments and the associated risks of transportation.