What is the minimum aggregate amount of Professional Liability coverage required for a Brain Balance franchise?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
MPANY pursuant to Section 17 hereof, COMPANY may apply any and all penalties associated with such violation, as set forth in the Operations Manual.
11. INSURANCE
11.01. Unless otherwise required by law, FRANCHISEE shall obtain, at its own cost and expense through COMPANY's designated broker, (i) Comprehensive Commercial General Liability, including all extensions, in an amount not less than one million dollars ($1,000,000) per occurrence, written on an occurrence basis, and $3,000,000 in the aggregate, including Business Personal Property and Improvements and Betterments at the suggested minimum amounts; (ii) Professional Liability coverage, including, but not limited to, education services ($1,000,000 per occurrence and $3,000,000 in the aggregate, which must include coverage for contingent bodily injury and property damage in the amount of $1,000,000); (iii) Abuse & Molestation coverage ($1,000,000 per occurrence; $3,000,000 in the aggregate); (iv) Commercial automobile liability insurance covering vehicles that are owned, non-owned, or hired by the Franchised Business with a combined single limit of $1,000,000, (v) Employment Practices Liability Insurance in an amount not less than one million dollars ($1,000,000) per occurrence; and (vi) Workers Compensation Insurance in an amount not less one million dollars ($1,000,000) per occurrence. FRANCHISEE also agrees to obtain disability, and any other insurance required by law in the state in which the Franchised Business office is located. FRANCHISEE acknowledges that COMPANY may modify or increase the insurance requirements during the term of this agreement due to changes in experience, market conditions, and regulatory or l
Source: Item 22 — CONTRACTS (FDD pages 70–72)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, franchisees are required to maintain Professional Liability coverage. This coverage must include education services and have a minimum of $1,000,000 per occurrence and $3,000,000 in the aggregate. The professional liability coverage must also include coverage for contingent bodily injury and property damage in the amount of $1,000,000.
This insurance protects the Brain Balance center against claims of negligence or errors in the educational services they provide. The aggregate limit of $3,000,000 represents the total amount the insurance company will pay out for all claims during the policy period.
Brain Balance also stipulates that franchisees must obtain this insurance through the company's designated broker, unless otherwise required by law. Additionally, Brain Balance can modify or increase the insurance requirements during the term of the agreement due to changes in experience, market conditions, and regulatory or legal changes that could increase exposure. Franchisees are obligated to comply with these new requirements. Brain Balance must be named as an additional insured on all of these policies except for workers compensation.