Are there approved vendors for E&O Insurance for Amerispec Inspection Services franchisees?
Amerispec_Inspection_Services Franchise · 2025 FDDAnswer from 2025 FDD Document
We have approved vendors for E&O Insurance; however, you may also obtain insurance from another insurer at a rate determined by the insurer so long as it meets our minimum requirements and is reviewed and approved by us.
Amounts listed are for annual premiums; however, rates vary state to state.
Your premiums will be based on the state in which you are located, revenue estimates of the inspectors, additional endorsements, the number of inspectors or inspections, years of retro coverage, and claims history.
We do not represent that our minimum insurance requirements will be sufficient for your business; we recommend that you consult a qualified insurance broker to discuss your insurance needs.
Source: Item 7 — Estimated Initial Investment (FDD pages 18–20)
What This Means (2025 FDD)
According to Amerispec Inspection Services's 2025 Franchise Disclosure Document, the company does have approved vendors for Errors and Omissions (E&O) Insurance. However, franchisees are not required to use these vendors. Franchisees can obtain insurance from another insurer as long as the insurance meets Amerispec Inspection Services's minimum requirements and is reviewed and approved by them.
The FDD specifies that the cost of insurance is an estimated annual premium, but rates can vary by state. Several factors influence the premium amount, including the franchisee's location, revenue estimates of the inspectors, any additional endorsements, the number of inspectors or inspections performed, the years of retro coverage, and the claims history.
The initial investment table in Item 7 lists the estimated cost for insurance as ranging from $3,950 to $6,200, payable before opening to an approved insurance carrier. Amerispec Inspection Services recommends that franchisees consult with a qualified insurance broker to discuss their insurance needs, as the company does not represent that their minimum insurance requirements will be sufficient for each individual business.