When is Builders' All Risk insurance required for a Del Taco franchise?

According to Del Taco's 2025 Franchise Disclosure Document, Builders' All Risk insurance is required when a franchisee is building, renovating, refurbishing, or remodeling their Del Taco restaurant. This insurance must cover the full replacement cost of all real and personal property involved in the construction, renovation, or remodeling project.

This requirement ensures that in the event of any damage or loss during construction or renovation, the franchisee has sufficient coverage to restore the restaurant to its original condition. The franchisee is responsible for maintaining this insurance coverage during the entire construction or renovation period.

Del Taco also mandates other insurance policies, such as Commercial General Liability insurance, Business Automobile Liability insurance, Workers' Compensation insurance, and "All Risk" property insurance. Franchisees must provide Del Taco with evidence of all required insurance coverages in the form of Certificates of Insurance and any required insurance policy endorsements before opening the restaurant and throughout the term of the franchise agreement.