Precision Garage Door Service · Exterior
PRECISION GARAGE DOOR SERVICE
FRANCHISE
INSURANCE
You just got a certificate-of-insurance request from a property management company that wants your crew to install and service garage doors across a portfolio of buildings. The contract is the kind of recurring revenue that changes a territory.
The request lists $2,000,000 per occurrence, the property manager named as an additional insured on a completed-operations basis, and a waiver of subrogation. Your policy shows $1,000,000 per occurrence and none of the endorsement language. You cannot produce the certificate. You cannot take the job.
That gap is rarely explained when you sign a franchise agreement. The agreement tells you the minimum coverage you must carry to satisfy your franchisor. It does not tell you what the first real commercial client will demand — or what your own work creates as exposure: high-tension springs, cables under load, and heavy doors that keep operating long after your technician leaves.
You put your savings and a personal guarantee into this business. Satisfying the franchisor is the floor. Protecting the investment is the point. Here is where the requirement ends before your real risk does.
JUMP TO SECTION
INSURANCE REQUIREMENTS
COMPLETED OPERATIONS CLAIMS
WORKERS' COMPENSATION
COMMERCIAL JOB COVERAGE
WORKERS' COMP AUDIT
INSURANCE PREMIUMS
RECOMMENDED COVERAGE
FAQs
Confirm completed operations is included within your GL policy
GENERAL LIABILITY
Strongly advised for all spring-and-cable work
WORKERS' COMPENSATION
$1,000,000 per claim / aggregate (Rikor baseline)
CONTRACTORS E&O
$250,000 with Third-Party Crime endorsement
COMMERCIAL CRIME
Size to the replacement value of your tools & equipment
INLAND MARINE
ON THIS PAGE
INSURANCE REQUIREMENTS
COMPLETED OPERATIONS CLAIMS
WORKERS' COMPENSATION
COMMERCIAL JOB COVERAGE
WORKERS' COMP AUDIT
INSURANCE PREMIUMS
RECOMMENDED COVERAGE
FAQs
POLICY REVIEW
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FRANCHISEE QUESTIONS
FREQUENTLY ASKED QUESTIONS
WHAT INSURANCE DOES A PRECISION GARAGE DOOR SERVICE FRANCHISE REQUIRE TO OPEN?
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We do not have the current FDD on file, so we will not state specific limits. Request the FDD from the franchisor and read Item 8. Expect general liability with completed operations, commercial auto, and workers' compensation at minimum, plus additional-insured and waiver-of-subrogation requirements.
WHAT ARE THE MINIMUM INSURANCE LIMITS FOR AN EXTERIOR HOME SERVICES FRANCHISE?
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Limits vary by franchisor. Many exterior brands set general liability at $1,000,000 per occurrence and $2,000,000 aggregate, but only your FDD's Item 8 states the figure that binds you.
HOW DO I BECOME COMPLIANT WITH MY FRANCHISOR'S INSURANCE REQUIREMENTS FOR THIS TRADE?
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Read Item 8 of your current FDD, carry the exact limits and endorsements it lists, name the correct franchisor legal entity as additional insured, and deliver a certificate of insurance at commencement and annually.
DOES MY FRANCHISOR REQUIRE A SPECIFIC INSURANCE PROGRAM OR CAN I CHOOSE MY OWN CARRIER?
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Many franchisors reserve the right to designate a program while allowing your own carrier above a minimum rating. Your FDD will state which applies. Confirm with your franchise representative.
WHAT ENTITY NAME GOES ON MY CERTIFICATE OF INSURANCE FOR AN EXTERIOR SERVICES FRANCHISE?
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The exact franchisor legal entity from your FDD's Item 1. We have not confirmed that entity for Precision Garage Door Service, so do not place a name on a certificate until you verify it from the current FDD.
DO I NEED WORKERS' COMPENSATION FOR A WINDOW CLEANING OR GARAGE DOOR FRANCHISE?
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For garage door work, workers' compensation is strongly advised regardless of state rules, because spring and cable injuries are severe. Many franchisors require it outright. Confirm in your Item 8.
WHAT DOES THE FDD SAY ABOUT INSURANCE FOR EXTERIOR HOME SERVICE FRANCHISES?
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The FDD's Item 8 lists required coverages, limits, and endorsements. We cannot quote Precision Garage Door Service's Item 8 because we do not have the document. Obtain it and review it before binding.
DOES MY STATE REQUIRE ADDITIONAL BONDING FOR WINDOW, GLASS, OR GARAGE DOOR CONTRACTORS?
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Some states and cities require a contractor license bond for installation work. Bonding is separate from insurance. Check your state contractor board.
WHAT HAPPENS IF A GARAGE DOOR I INSTALLED FALLS ON SOMEONE A MONTH AFTER THE JOB?
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That is a products and completed-operations claim. Your general liability must include completed operations to respond after the job is finished. Confirm it is inside your GL limit.
DOES MY INSURANCE COVER A WORKER WHO FALLS OFF A LADDER OR IS HURT BY A SPRING AT A CUSTOMER'S HOUSE?
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A worker injury is covered by workers' compensation, which pays medical care and lost wages. Spring and cable injuries are exactly why this coverage matters for garage door crews.
WHAT IS INLAND MARINE COVERAGE AND DO EXTERIOR SERVICE FRANCHISEES NEED IT FOR EQUIPMENT?
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Inland marine covers tools and equipment wherever they travel. It is recommended, sized to your actual equipment value, because standard property coverage does not follow gear off a fixed location.
WHAT HAPPENS AT MY WORKERS COMP AUDIT IF I USED SUBS OR HIRED EXTRA CREW FOR A COMMERCIAL JOB?
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The carrier reviews actual payroll and subcontractor payments at year-end and adjusts the premium. Payments to uninsured subs can be charged as your own payroll. This is an audit adjustment, not a claim denial.
Get your Precision Garage Door Service policy reviewed before you bind
Start here. First, obtain the current FDD and read Item 8, then confirm the exact franchisor legal entity that must appear on your certificate before any name is placed on a COI. Second, verify your general liability includes products and completed operations, since door and spring failures surface after the job. Third, confirm workers' compensation is in place for spring-and-cable work and that owner-operators doing installs are included. Fourth, check the policy is primary and non-contributory with a waiver of subrogation if your agreement requires it. Fifth, match your limits and additional-insured wording to any commercial certificate before you bid. Sixth, confirm your tools and equipment are covered off-premises through inland marine.
When you bring on a 1099 crew for a commercial install, collect each subcontractor's certificate of insurance before work begins and disclose the added labor to your carrier — this keeps a sub's injury or mistake from landing on your policy and your year-end audit.
SUBCONTRACTOR RISK
A LAPSED SUB CERTIFICATE IS INVISIBLE UNTIL YOUR CARRIER FINDS IT
Most home service franchisees use independent contractors or 1099 workers at some point. The coverage gap this creates is not obvious until a claim surfaces. When a certificate lapses, your carrier invokes the subcontractor exclusion in your general liability policy. The work was done. The damage is real. The coverage is not there.
Rikor's subcontractor compliance monitoring tool tracks subcontractor certificates in real time. When a certificate lapses, you know before the next job starts — not after the claim comes in.
WADE MILLWARD, CIC
Founder & CEO · Rikor Insurance
Wade Millward has spent 18 years specializing in franchise insurance. He holds the Certified Insurance Counselor (CIC) designation and has reviewed hundreds of franchise disclosure documents across home service, food service, and commercial franchise verticals. He has built coverage programs for Authority Brands franchisees across electrical, HVAC, plumbing, and restoration trades.