Can Del Taco specify a Cyber Liability insurance limit other than $1,000,000 per occurrence?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
normal business operations; and (c) loss of rents insurance covering a minimum of twelve (12) months' fixed minimum rent.
- 11.1.1.5 B
Source: Item 22 — CONTRACTS (FDD pages 58–59)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, Del Taco franchisees are required to maintain Cyber Liability insurance. The standard minimum coverage is $1,000,000 per occurrence. However, Del Taco retains the right to specify a different limit.
This means that while the initial requirement is $1,000,000, Del Taco can increase or decrease this amount based on their assessment of risk and industry standards. This flexibility allows Del Taco to adapt to changing cybersecurity threats and insurance market conditions.
For a prospective franchisee, this implies that the cost of Cyber Liability insurance could fluctuate over time depending on Del Taco's requirements. It would be prudent to discuss with Del Taco their expectations for Cyber Liability insurance limits in the future and how they determine those limits.