RAINBOW RESTORATION

For Rainbow specifically, the 2025 FDD (Item 8) requires: Commercial General Liability at $1,000,000 per occurrence / $2,000,000 aggregate; Commercial Auto at a combined single limit up to $2,000,000 but no less than $1,000,000; Pollution Liability at $1,000,000 each loss covering mold, bacteria, and fungi; Workers' Compensation regardless of state law; Bailee/Bailor at $250,000; Errors and Omissions at $1,000,000 per claim / $2,000,000 aggregate on a claims-made basis; and Cyber at $500,000. All carriers must be A.M. Best A-VIII or better, and the franchisor can designate additional insureds over time.

Rainbow International SPV LLC, a Delaware limited liability company at 1010 North University Parks Drive, Waco, Texas 76707, a Neighborly company. The FDD lets the franchisor designate any entity with an insurable interest as an additional insured you must add, so the construction is open-ended: Rainbow International SPV LLC, its parents, subsidiaries, affiliates, successors, and assigns, plus any party the franchisor designates in writing. Confirm current designations with your franchise representative.

Yes — if you carry the errors and omissions coverage the Rainbow FDD requires, and you keep it answerable. E&O (professional liability) covers a claim that you got a professional judgment wrong, like clearing a property as dry when moisture remained. The Rainbow FDD requires E&O at $1,000,000 per claim on a claims-made basis. Because it is claims-made, you must add a tail (extended reporting period) of at least two years to cover claims filed after the policy ends.

A bailee holds another person's property for a purpose. When your crew packs out a customer's contents during a restoration job, you are a bailee with a legal duty to return the property undamaged. Standard general liability and standard commercial property both exclude property of others in your care. Rainbow requires bailee/bailor coverage at $250,000. Size it to the largest combined inventory you could be holding at once.

Pollution liability — Contractors Pollution Liability — covers bodily injury, property damage, and cleanup from pollutants released by your work. For restoration, the pollutants are mold, sewage, bacteria, antimicrobial chemicals, and biological material from trauma scenes. A standard general liability policy excludes all of them. Rainbow requires pollution coverage at $1,000,000 and specifically names mold, bacteria, and fungi — appropriate for its biohazard and trauma work.

Workers' compensation premium is based on actual payroll, trued up at a year-end audit. If you add crews for a storm surge and that payroll was not in your estimate — or was coded under a lower-rated class than the trauma or biohazard work being done — the carrier corrects it at audit and bills the difference. That is a premium reconciliation, not a claim denial. Disclose surge payroll up front and ask for a mid-term adjustment to avoid a lump-sum bill.

A full Rainbow program — GL, auto, WC, pollution, E&O, bailee, and cyber — for an established territory commonly runs $16,000 to $30,000 per year. The required E&O and pollution lines, written in the specialty market, sit at the higher end of restoration pricing. The FDD's Item 7 estimate of $12,000 to $18,000 covers general liability, pollution, workers' compensation, and office insurance, and sits at the lower end once E&O, bailee, cyber, and fleet are added.

Professional liability — errors and omissions (E&O) — covers a claim that you got a professional judgment wrong: a moisture assessment, a remediation scope, or a drying decision. A standard general liability policy does not cover professional errors. Rainbow is one of the few restoration brands to require it outright, at $1,000,000 per claim on a claims-made basis — which means you also need a tail to cover claims filed after the policy ends.

Yes. The Rainbow FDD requires workers' compensation regardless of whether your state mandates it, with minimum coverage as required by law. Restoration carries real occupational exposure — mold, sewage, biohazards, chemicals, and heavy equipment — so the "regardless of state law" requirement closes the gap a state opt-out would otherwise leave for a field crew.