What is the minimum amount of commercial automobile liability insurance a Dryject franchisee must maintain?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
and Two Million Dollars ($2,000,000.00) general aggregate. Coverage must be written on an occurrence basis only, not claims-made;
- (iii) You shall maintain or cause to be maintained commercial automobile liability insurance against claims for personal injury, death or property damage occurring as a result of the maintenance or operation by You of any automobiles, trucks or other vehicles used in the operation of the Franchised Business in an amount set forth in the Operations Manual, currently not less than One Million Dollars ($1,000,000.00) Combined Single Limit;
- (iv) You shall maintain or cause to be maintained workers' compensation insurance, in such amounts as may now or hereafter be required by any applicable law, and shall withhold from the pay of Your employees and pay any and all amounts required to be so paid for unemployment 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 deli
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 commercial automobile liability insurance against claims for personal injury, death, or property damage resulting from the use of vehicles in their business operations. The minimum coverage required is $1,000,000.00 Combined Single Limit. This insurance must be written on an occurrence basis, meaning it covers incidents that occur during the policy term, regardless of when the claim is filed.
In addition to commercial automobile liability insurance, Dryject franchisees are also required to maintain workers' compensation insurance in amounts required by applicable law, as well as an umbrella policy providing extended coverage to the commercial general liability, auto liability, and employers' liability insurance, with a minimum of $1,000,000.00. Dryject also reserves the right to increase the minimum limits or add new types of required coverage as detailed in the Operations Manual.
Dryject requires that all insurance policies be written by a company satisfactory to them, and the policies must name Dryject as an additional insured/loss payee to protect them against any liability arising from the franchisee's operation of the business. Franchisees must provide certificates of insurance to Dryject at least ten days before opening their business to demonstrate compliance with these requirements.
It is important for prospective Dryject franchisees to understand these insurance requirements, as failure to maintain adequate coverage could result in a breach of the franchise agreement and potential liability for any claims or damages. Franchisees should consult with an insurance professional to ensure they obtain the appropriate coverage to meet Dryject's requirements and protect their business.