What is the minimum limit required for Cyber Risk insurance for a Petro Stopping Center?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
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
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, franchisees are required to maintain Cyber Risk insurance with a minimum limit of $2,000,000 for each claim. This insurance coverage must address claims related to security failures, privacy events, and security breaches, including the costs associated with investigations, forensic services, legal counsel, breach response, notification services, call center services, and credit and identity theft monitoring. It also extends to business interruption, data asset protection, network security, consumer privacy liability, regulatory defense, multimedia liability, cyber extortion, and social engineering losses.
This requirement ensures that Petro Stopping Center franchisees are financially protected against the increasing threats of cyberattacks and data breaches, which can be particularly damaging to businesses that handle sensitive customer information or rely heavily on digital systems. The insurance coverage is designed to mitigate the financial impact of such incidents, covering not only direct losses but also the costs of recovery and compliance.
Petro Stopping Center also mandates that 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. Furthermore, the deductible for any insurance policy cannot exceed $500,000. These stipulations ensure that the insurance coverage is reliable and adequate to protect both the franchisee and Petro Stopping Center from potential liabilities and losses.