What specific areas must the pollution legal liability insurance cover for a Petro Stopping Center?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
sed 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 compl
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 37–42)
What This Means (2025 FDD)
According to the 2025 FDD, Petro Stopping Center franchisees must maintain pollution legal liability insurance. This insurance must have limits of not less than $5,000,000 per occurrence and comply with all state, local, and federal regulations. The insurance coverage must include the entire Petro Center site, as well as all underground storage tanks (USTs). If the state where the Petro Stopping Center is located has a tank fund, then coverage for USTs must equal $5,000,000 with excess coverage.
This requirement ensures that Petro Stopping Center franchisees are financially protected against potential pollution liabilities arising from their operations. The comprehensive coverage, including the entire site and USTs, indicates the franchisor's concern for environmental protection and risk management. The $5,000,000 minimum coverage limit suggests that potential pollution incidents could result in significant financial consequences.
For a prospective franchisee, this means factoring in the cost of this specialized insurance when evaluating the overall investment. It also highlights the importance of understanding and complying with all environmental regulations to minimize the risk of pollution incidents. The need for excess coverage if a state has a tank fund further emphasizes the importance of understanding state-specific requirements.
It is important to note that Petro Stopping Center can modify the minimum insurance requirements and notify franchisees of changes in writing. All insurance policies must be 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. No deductible may be greater than $500,000.