Is liquor liability insurance required for all Petro Stopping Center franchises?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
indemnification, including fines and assessments; (f) multimedia liability; (g) cyber extortion, including but not limited to the use of ransomware or other malware to compromise your systems; and (h) social engineering or other forms of electronic manipulation that result in covered loss;
- (h) Liquor liability insurance (but only if serving or selling alcoholic beverages at the Petro Cent
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 37–42)
What This Means (2025 FDD)
According to Petro Stopping Center's 2025 Franchise Disclosure Document, liquor liability insurance is not required for all franchisees. It is only required if the franchisee serves or sells alcoholic beverages at their Petro Center location. If liquor liability insurance is required, the franchisee must maintain coverage with limits of not less than $3,000,000 for each common cause and $3,000,000 annual aggregate, covering bodily injury and property damage. This coverage applies if liability for either bodily injury or property damage is imposed because of the selling, serving, or furnishing of any alcoholic beverage by the franchisee.
Petro Stopping Center also mandates that franchisees obtain and maintain several other insurance policies, including comprehensive general liability insurance ($10,000,000 limit), all-risk property insurance, commercial automobile liability insurance ($5,000,000 limit), pollution legal liability insurance ($5,000,000 limit), worker's compensation insurance, employer's liability insurance ($1,000,000 limit), and cyber risk insurance ($2,000,000 limit). These policies protect Petro Franchise (and its Affiliates) and their respective officers, directors, partners, and employees against loss, liability, or expense arising from the Petro Center's operation.
All insurance policies must be issued by carriers licensed and admitted to write coverage in the state where the site is located and rated A- or higher by A.M. Best and Company, Inc. The deductible for these policies cannot be greater than $500,000. Petro Franchise and any designated affiliates must be named as additional insureds on all required policies. Franchisees must provide Petro Franchise with certificates of insurance upon execution of the Franchise Agreement, renewal of any underlying insurance policy, or upon request. Petro Franchise may modify the minimum insurance requirements and notify franchisees of changes in writing.