What is the minimum amount of notary professional liability insurance that an Annex Brands franchisee must obtain?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
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To ensure adequate insurance coverage, Subsection 9.I of the franchise agreement requires you to obtain and maintain in force, at your sole expense, under policies of insurance issued by carriers with no less than a Best's rating of A, the following:
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- Comprehensive general, public, and product liability insurance, against claims for bodily and personal injury, death, and property damage caused by or occu
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 39–43)
What This Means (2025 FDD)
According to Annex Brands's 2025 Franchise Disclosure Document, franchisees are required to maintain notary professional liability insurance. The minimum coverage amount is $500,000, but there's a condition: if the maximum permitted by the state where the franchise is located is less than $500,000, the franchisee only needs to obtain the maximum amount allowed by that state. This ensures compliance with local regulations while providing a baseline level of protection.
This insurance protects against claims arising from errors or omissions in the franchisee's notary services. It's a standard requirement for businesses offering notary services, as it mitigates potential financial risks associated with legal liabilities. The fact that Annex Brands specifies a minimum coverage amount demonstrates the importance they place on risk management and protecting both the franchisee and the brand's reputation.
Prospective franchisees should verify the specific notary professional liability insurance requirements in their state to ensure they meet the necessary coverage levels. If the state's maximum allowable coverage is less than $500,000, they will only be required to obtain the lower amount. This flexibility acknowledges the varying legal landscapes across different states and ensures franchisees are not burdened with unnecessary costs.