What does Craters & Freighters strongly recommend franchisees obtain in addition to the minimum insurance requirements?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
The policies and amounts provided above are our minimum insurance requirements. We strongly recommend that you work with a licensed insurance agent or broker to identify and obtain additional insurance coverage for your Franchised Business including, but not limited to, warehouse storage and cyber insurance coverage.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 18–20)
What This Means (2025 FDD)
According to Craters & Freighters's 2025 Franchise Disclosure Document, while specific minimum insurance requirements are mandated, Craters & Freighters strongly recommends that franchisees consult with a licensed insurance agent or broker to explore and secure additional insurance coverage tailored to their franchised business.
This recommendation includes, but is not limited to, obtaining warehouse storage and cyber insurance coverage. This suggests that the minimum insurance requirements may not fully cover all potential risks associated with operating a Craters & Freighters franchise, particularly those related to storing goods and data security.
Prospective franchisees should carefully consider this recommendation and evaluate their individual risk exposure to determine the appropriate level of additional coverage needed. Engaging with an insurance professional is crucial to understanding these risks and ensuring adequate protection for their investment. This proactive approach to insurance can help mitigate potential financial losses from unforeseen events such as theft, damage, or cyberattacks.