What are the insurance requirements for operating a Petro Stopping Center franchise?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
ck Service Mobile Maintenance Program to customers within your Protected Area (if any) without providing you any compensation.
- 7.20 Parking Programs. You must participate in reserved parking and other parking programs that we designate from time to time (the "Parking Programs"). If you plan to enclose your parking lot, charge for parking, or otherwise establish parking polices (the "Franchisee Parking Plan"), such Franchisee Parking Plan may not conflict with our Parking Programs and will be subject to our prior approval. We reserve the right to require you to modify or terminate the Franchisee Parking Plan at any time.
8. INSURANCE.
8.1 Insurance Required. During the Term, you must maintain in force, at your expense policies of insurance issued by carriers who are licensed and admitted to write coverage in the state where the Site is located and are rated A- or higher by A.M. Best and Company, Inc. All listed insurance limits may be made up of a primary policy, or combination of primary and excess coverage. No deductibles shall be greater than five hundred thousand ($500,000) unless otherwise agreed to in writing by us. The following types of insurance coverage are required:
- (a) Comprehensive general liability insurance and product liability insurance with limits of ten million dollars ($10,000,000) combined single limit per occurrence, including broad form contractual liability, personal injury, and products completed operations. The policy must list us and our affiliates, directors, officers, agents and employees as additional insureds.
- (b) All risk (special perils) property insurance, on the Petro Center and all fixtures, equipment, inventory, and real property used in the operation of the Petro Center, for full repair and replacement value, without depreciation or co-insurance. In addition, policy shall cover lost income due to property damage.
(c) Commercial automobile liability insurance with a combined single limit of five million dollars ($5,000,000) per occurrence for all vehicles (owned, hired, rental, leased) used in connection with the operation of the Petro Center. The policy must list us and our affiliates, directors, officers, agents and employees as additional insureds. If the Petro Center uses no vehicles for business purposes this requirement may be reduced with written agreement from us.
(d) Pollution legal liability insurance with limits of not less than five million dollars ($5,000,000) per occurrence and in compliance with all state, local and federal regulations, which is inclusive of the entire Petro Center and Site as well as all underground storage tanks ("USTs"), or if the state where located has a tank fund, then coverage for USTs to equal five million dollars ($5,000,000) with excess coverage.
(e) Worker's compensation insurance in amounts required by all applicable laws in which your Petro Center is located.
(f) Employer's Liability insurance, with limits of at least one million dollars ($1,000,000.) per accident. The policy must list us and our affiliates, directors, officers, agents and employees as additional insureds.
(g) Cyber risk insurance, with limits of not less than $2,000,000 for each claim, covering claims arising out of or related to (a) investigation of an actual or alleged security failure, privacy event, security breach of other related incident, including but not limited to forensic services, legal counsel, and breach coaching services, breach response, and notification services, call center services, credit and identity theft monitoring and protection services, media and public relations services; (b) business income/business interruption/extra expense; (c) digital and data asset protection and restoration; (d) network security & consumer privacy liability; (e) regulatory defense and indemnification, including fines and assessments; (f) multimedia liability; (g) cyber extortion, including but not limited to the use of ransomware or other malware to
Source: Item 14 — Other investments (FDD pages 131–208)
What This Means (2025 FDD)
According to the 2025 FDD, Petro Stopping Center franchisees must maintain several insurance policies with specific coverage amounts and terms. These policies must be issued by carriers licensed and admitted in the state where the Petro Center is located, with a rating of A- or higher from A.M. Best and Company, Inc. The insurance limits can be met through a combination of primary and excess coverage policies. Deductibles generally cannot exceed $500,000 unless Petro Franchise Systems LLC agrees otherwise in writing.
The required insurance includes comprehensive general liability and product liability insurance with a $10,000,000 combined single limit per occurrence. This policy must include broad form contractual liability, personal injury, and products completed operations, and must list Petro Franchise Systems LLC and its affiliates as additional insureds. Franchisees also need all-risk property insurance covering the Petro Center, fixtures, equipment, inventory, and real property at full repair and replacement value, without depreciation or co-insurance, including coverage for lost income due to property damage.
Commercial automobile liability insurance is required with a $5,000,000 combined single limit per occurrence for all vehicles used in connection with the Petro Center's operation, also listing Petro Franchise Systems LLC as an additional insured. This requirement may be reduced if the Petro Center uses no vehicles for business purposes, subject to written agreement from Petro Franchise Systems LLC. Pollution legal liability insurance is mandated with limits of not less than $5,000,000 per occurrence, compliant with all state, local, and federal regulations, covering the entire Petro Center, site, and underground storage tanks (USTs), or equivalent coverage for USTs if the state has a tank fund. Worker's compensation insurance must be maintained in amounts required by applicable laws in the location of the Petro Center. Employer's Liability insurance, with limits of at least $1,000,000 per accident is also required, with Petro Franchise Systems LLC listed as additional insureds.
Additional insurance requirements include cyber risk insurance with limits of not less than $2,000,000 per claim, covering various cyber-related incidents, and liquor liability insurance (if serving or selling alcoholic beverages) with limits of not less than $3,000,000 for each common cause and $3,000,000 annual aggregate. Garagekeepers' liability insurance with limits of not less than $60,000 per occurrence is also required. Franchisees must furnish Petro Franchise Systems LLC with copies of all insurance policies or evidence of coverage and premium payments before opening the Petro Center.