What is the minimum required Cyber Liability coverage for a Red Wagon Club franchise?
Red_Wagon_Club Franchise · 2024 FDDAnswer from 2024 FDD Document
| Coverage Types | Required Limits of Coverage | |
|---|---|---|
| Cyber Liability | $1,000,000 to cover any claims related to including but not limited to first and third party cyber breaches and defense and recovery expenses |
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 19–22)
What This Means (2024 FDD)
According to Red Wagon Club's 2024 Franchise Disclosure Document, franchisees are required to maintain a minimum of $1,000,000 in Cyber Liability coverage. This coverage is intended to cover claims related to cyber breaches, including both first and third-party incidents, as well as associated defense and recovery expenses.
Red Wagon Club also mandates several other insurance policies, including General Liability, Auto Liability, Business Property, Business Interruption, Employer Liability, Workers Compensation, and Employment Practices Liability. The franchisor emphasizes that these insurance requirements represent only the minimum coverage deemed acceptable to protect their interests and are not warranties that the coverage is sufficient for the franchisee's needs.
It is the franchisee's responsibility to determine and acquire any additional coverage necessary to protect their interests and those of their Red Wagon Club business, based on their own independent investigation. Red Wagon Club is not responsible for losses that exceed the franchisee's insurance coverage under any circumstances. The franchisor also retains the right to establish and require participation in additional mandatory insurance programs in the future, potentially increasing the franchisee's insurance costs.