What kind of extended coverage policy is a Dryject franchisee required to maintain?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
yment compensation, disability, Social Security, and other such federal, state and/or local taxes imposed upon You as an employer;
- (v) You shall maintain or cause to be maintained an umbrella policy as extended coverage to the commercial general liability, auto liability and employers liability insurance in an amount set forth in the Operations Manual, currently not less than One Million Dollars ($1,000,000.00); and,
- (vi) Such other insurance that may be required by the statutes or other laws of the state or province or any local governmental entity in which Your Franchised Business is located and operated.
- (c) All insurance policies required under this Agreement shall be written by an insurance company satisfactory to Us. All policies of liability insurance shall insure and name Us as an additional insured/loss payee and shall protect Us against any liability that may accrue by reason of the ownership, maintenance or operation by You of the Franchised Business.
- (d) We reserve the right to increase the minimum limits listed above as well as to change or add new types of required coverage as set forth in greater detail in the Operations Manual.
- (e) Your obligation to obtain and maintain or cause to be maintained the foregoing policy or policies of insurance shall not be limited in any way by reason of any insurance that may be maintained by Us, nor shall Your performance of this obligation relieve You of liability under the indemnity provision set forth in this Agreement. You shall deliver to Us certificates of insurance evidencing Your compliance no less than ten (10) days prior to opening the Franchised Business.
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, franchisees must maintain an umbrella policy as extended coverage to the commercial general liability, auto liability, and employers' liability insurance. The minimum amount for this umbrella policy is currently $1,000,000.00, though Dryject reserves the right to increase this limit or add new types of required coverage as detailed in the Operations Manual.
This umbrella policy must be written on an occurrence basis, meaning it covers incidents that occur during the policy period, regardless of when a claim is filed, and not on a claims-made basis. Additionally, franchisees are required to maintain commercial automobile liability insurance with a combined single limit of not less than $1,000,000.00, as well as workers' compensation insurance in amounts required by applicable law.
Dryject also requires that all insurance policies be written by an insurance company satisfactory to them, and Dryject must be named as an additional insured/loss payee on all liability insurance policies. Franchisees must provide certificates of insurance to Dryject at least ten days before opening their franchise business, demonstrating their compliance with these insurance requirements. These insurance obligations are not limited by any insurance Dryject may maintain, nor do they relieve the franchisee of liability under the indemnity provision in the Franchise Agreement.