Does Dollar Rent A Car require franchisees to obtain public liability insurance?
Dollar_Rent_A_Car Franchise · 2025 FDDAnswer from 2025 FDD Document
le Comprehensive and Collision Insurance*. You may be required to carry comprehensive and collision insurance, if We so require in the Operations Guide or otherwise in writing. You may be required to carry such insurance as a condition to Your purchase or lease of Vehicles from Us or Our Affiliates.
- 16.3. Other Liability Insurance. You shall obtain and keep in full force and effect at all times during the term of this Agreement policies of insurance applicable to all Your Franchised Businesses which cover public liability (including comprehensive general liability, garage liability and garage keepers legal liability). Such insurance shall include an endorsement protecting You and Us, and Your and Our Affiliates, shareholders, officers, directors, partners and employees, and other franchisees of Ours and Our Affiliates from any claims, loss, liability, personal injury, death, property damage, loss of business income or expense whatsoever arising from their handling of Your business or equipment in the course of activities related to Your Franchised Business or Franchised System. The policies shall include at a minimum (except as additional coverages, higher policy limits and other provisions may from time to time be prescribed in the Operations Guide):
- (a) Commercial general liability insurance (occurrence type, which shall include personal injury and advertising liability insurance) with limits of not less than one million dollars ($1,000,000) combined single limit per occurrence; and automobile and truck liability coverage for all owned, non-owned, and hired vehicles, covering bodily injury, including death, and property damage with limits of not less than one million dollars ($1,000,000) combined single limit per occurrence. The aforesaid insurance shall be primary and non-contributory.
- (b) Workers' Compensation and Employer's Liability insurance as well as such other insurance as may be required by statute or rule of the state in which Your Franchised Business is located or operated. Employer's Liability insurance shall have limits of not less than five hundred thousand dollars ($500,000).
- (c) Excess liability insurance with a combined single limit of not less than four million dollars ($4,000,000) per occurrence in excess of the underlying liability insurance requirements set forth in Section 16.3(a) and (b) above.
- (d) Commercial property insurance for all real and personal property owned by You and used in Your busines
Source: Item 23 — RECEIPTS (FDD pages 102–301)
What This Means (2025 FDD)
According to the 2025 Dollar Rent A Car Franchise Disclosure Document, franchisees are required to obtain and maintain public liability insurance. This includes comprehensive general liability, garage liability, and garage keepers legal liability insurance. The insurance policy must protect the franchisee, Dollar Rent A Car, their affiliates, shareholders, officers, directors, partners, employees, and other franchisees from claims related to personal injury, death, property damage, loss of business income, or any other loss arising from the handling of the franchisee's business or equipment.
The minimum coverage required for commercial general liability and automobile/truck liability is $1,000,000 combined single limit per occurrence. Additionally, franchisees must secure Workers' Compensation and Employer's Liability insurance, as mandated by state laws, with Employer's Liability insurance having limits of no less than $500,000. Furthermore, Dollar Rent A Car franchisees must maintain excess liability insurance with a combined single limit of at least $4,000,000 per occurrence, exceeding the underlying liability insurance requirements.
Dollar Rent A Car also requires franchisees to obtain commercial property insurance for all real and personal property used in the business, including business interruption insurance. Franchisees must also carry data privacy and security insurance covering negligent acts and omissions related to their franchised business, in amounts prescribed by Dollar Rent A Car in its Operations Guide. These insurance requirements ensure that both the franchisee and Dollar Rent A Car are protected from potential financial losses due to various liabilities and risks associated with operating the rental car business.