What is the minimum amount of the umbrella policy a Dryject franchisee must 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 limi
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 with extended coverage to their commercial general liability, auto liability, and employer's liability insurance. The minimum amount for this umbrella policy is currently set at $1,000,000.00.
This insurance requirement protects both the franchisee and Dryject from significant financial losses resulting from major incidents. The umbrella policy acts as an additional layer of protection above the other liability insurance policies, covering claims that exceed the limits of those primary policies. This is a fairly standard practice in franchising, especially in service-oriented businesses, to mitigate risks associated with potential liabilities.
It is important to note that Dryject retains the right to increase the minimum coverage limits or introduce new types of required coverage in the future, as detailed in the Operations Manual. Franchisees should regularly review the Operations Manual and communicate with Dryject to ensure they meet all current insurance requirements. Additionally, franchisees must ensure that all insurance policies are written by an insurance company that Dryject finds satisfactory and that Dryject is named as an additional insured/loss payee on all liability insurance policies.