REMODELING · RE-BATH, LLC
RE-BATH
FRANCHISE
INSURANCE
A Re-Bath franchisee in the Southeast finished a full shower-to-walk-in conversion in three days. The customer paid, left a five-star review, and moved on. Four months later the customer called back — not to praise the work, but because a stain had bloomed on the ceiling of the room below the bathroom.
Water had been wicking behind the new shower wall the whole time. By the time anyone saw it, the drywall was soft and black mold had spread across the cavity. The repair bill came to $41,000.
The franchisee assumed general liability would cover it. They had done everything their franchise agreement asked. The policy in the file did not respond the way they expected.
That policy satisfied the franchisor's requirements. Here is where those requirements end before your real risk does — and what protects the business you actually built.
Franchisor Entity: Re-Bath, LLC (Unconfirmed — verify exact legal entity from current FDD before certificate of insurance issuance.)
JUMP TO SECTION
HOW TO BECOME COMPLIANT WITH RE-BATH
WHAT IF WATER GETS BEHIND A WALL AND MOLD DEVELOPS?
MY GL SAYS PROPERTY DAMAGE — WHY DID THEY DENY MY BAD WORKMANSHIP CLAIM?
DOES MY POLICY COVER THE CUSTOMER'S BELONGINGS DURING A REMODEL?
WHAT IF MY SUB CAUSES DAMAGE AND HAS NO COVERAGE?
HOW IS RE-BATH FRANCHISE INSURANCE PREMIUM CALCULATED?
WHAT EXPERIENCED RE-BATH OPERATORS CARRY BEYOND THE MINIMUM
FREQUENTLY ASKED QUESTIONS
$1M · Occurrence
GENERAL LIABILITY
Not Specified
COMMERCIAL AUTO
State Required
WORKERS COMPENSATION
$250K Benchmark
CYBER LIABILITY
Re-Bath Entity (Unconfirmed)
ADDITIONAL INSURED
ON THIS PAGE
HOW TO BECOME COMPLIANT WITH RE-BATH
WHAT IF WATER GETS BEHIND A WALL AND MOLD DEVELOPS?
MY GL SAYS PROPERTY DAMAGE — WHY DID THEY DENY MY BAD WORKMANSHIP CLAIM?
DOES MY POLICY COVER THE CUSTOMER'S BELONGINGS DURING A REMODEL?
WHAT IF MY SUB CAUSES DAMAGE AND HAS NO COVERAGE?
HOW IS RE-BATH FRANCHISE INSURANCE PREMIUM CALCULATED?
WHAT EXPERIENCED RE-BATH OPERATORS CARRY BEYOND THE MINIMUM
FREQUENTLY ASKED QUESTIONS
SIX-POINT CHECKLIST
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FRANCHISEE QUESTIONS
FREQUENTLY ASKED QUESTIONS
WHAT DOES THE FDD SAY ABOUT INSURANCE FOR HOME REMODELING FRANCHISES?
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We don't have a current Re-Bath FDD on file, so we can't publish its exact requirements. The insurance section lives in Item 8 of your franchise agreement. Request the most recent FDD from your franchise consultant or Re-Bath's franchise development team and verify the insurance section directly before binding any policy.
WHAT ENTITY NAME GOES ON MY CERTIFICATE OF INSURANCE FOR A REMODELING FRANCHISE?
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Your own legal business entity is the named insured — the business the policy covers. Your franchise agreement will require the franchisor's legal entity as an additional insured. Confirm that exact entity name from your FDD; an unverified or wrong name makes the certificate non-compliant.
WHAT HAPPENS IF WATER GETS BEHIND A WALL AFTER A SHOWER REMODEL AND MOLD DEVELOPS?
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Standard general liability carries a pollution exclusion, and most carriers treat mold as a pollutant. The portion tied to redoing your own faulty waterproofing also falls under the "your work" exclusion. Contractors pollution liability with mold coverage is what responds to this loss.
MY GL SAYS IT COVERS PROPERTY DAMAGE — WHY DID THEY DENY MY CLAIM FOR BAD WORKMANSHIP?
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General liability covers damage your work causes to other property and bodily injury from an accident. It does not pay to redo your own faulty work — that is the "your work" exclusion. Contractors errors and omissions coverage is the policy that addresses faulty workmanship.
DOES MY POLICY COVER THE CUSTOMER'S BELONGINGS DAMAGED DURING A REMODEL?
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Sudden, accidental damage to the customer's other property — a gouged floor, a broken mirror — is generally what general liability is built for. Damage to a fixture you were actively installing may fall under a care, custody, and control limitation. Confirm how your policy draws that line before a claim.
WHAT HAPPENS IF MY SUB CAUSES WATER DAMAGE AND THEY HAVE NO COVERAGE?
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If your general liability has a subcontractor exclusion, the claim may be denied. If it includes independent contractors liability, your coverage extends to the sub's work. Collect a current certificate from every sub before work starts so an uninsured sub's mistake does not become your loss.
DOES COMPLETED OPERATIONS COVERAGE APPLY TO A BATH REMODEL THAT FAILS A YEAR LATER?
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Yes, if your general liability is written on an occurrence form, which covers an incident based on when it happened rather than when the claim is filed. A bathroom that leaks or fails months later depends on that occurrence form and on completed operations coverage being intact.
DO I NEED WORKERS' COMPENSATION IF I USE EMPLOYEES TO COMPLETE REMODELS?
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Yes. Most states require it, and it protects you from paying out of pocket for an injured worker. The employers liability limits on that policy, typically $1,000,000 each accident, respond when an injured worker sues you as the employer.
DOES MY STATE REQUIRE A CONTRACTOR'S LICENSE AND BOND IN ADDITION TO INSURANCE?
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Often yes. A contractor license bond is a state or local requirement to hold your trade license. It is separate from insurance and does not replace it. Confirm your state's requirement before your first job.
Protect what you built — a six-point check
Your coverage is only as good as the gaps you close before a claim, not after. Six checks will tell you whether your policy protects the business you built or just looks the part.
First, when your FDD arrives, pull the insurance section and confirm the exact franchisor legal entity that belongs on your certificates — then check that it appears, spelled correctly, on every certificate you have issued. Second, ask your agent in writing whether you carry contractors pollution liability with mold coverage, because water behind a wall is the claim this trade is built to produce. Third, confirm you have contractors errors and omissions coverage with a faulty workmanship feature; your tile, your waterproofing, and your design are professional work your general liability excludes. Fourth, ask how your policy treats damage to customer property in your care, so you are not learning the answer when a tub meets a hardwood floor. Fifth, confirm your general liability is written on an occurrence form so a leak that surfaces next year is still covered. Sixth, verify the employers liability limits on your workers' compensation policy are set at $1,000,000 and not left blank.
One more, on the people you bring in: the certificate you collect from a 1099 plumber or tile setter is not paperwork. A current certificate before the job removes both the year-end audit bill and the risk that an uninsured sub's injury becomes your personal obligation. A free tool to track and verify those certificates is at protectmyfranchise.com.
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.