On what basis must the general liability insurance be maintained for a Counselor Realty franchise?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
ge. You must maintain general liability insurance on an occurrence basis with a minimum limit of at least $1,000,000 per occurrence and $2,000,000 in the aggregate, and errors and omissions insurance with a minimum limit of at least $1,000,000. If you do not already carry acceptable coverage, initial premiums for required insurance are estimated to be approximately $1,500 to $6,000 per year. The cost of other coverages, including your discretionary purchases, varies widely.
- E.
Source: Item 7 — INITIAL INVESTMENT (FDD pages 13–15)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, franchisees must maintain general liability insurance on an occurrence basis. This means the insurance policy covers incidents that occur during the policy period, regardless of when a claim is filed.
The FDD specifies that the general liability insurance must have a minimum limit of at least $1,000,000 per occurrence and $2,000,000 in the aggregate. The 'per occurrence' limit refers to the maximum amount the insurance company will pay for any single incident, while the 'aggregate' limit is the total amount the insurer will pay out during the policy term, regardless of the number of claims.
In addition to general liability insurance, Counselor Realty franchisees must also maintain errors and omissions insurance with a minimum limit of at least $1,000,000. The initial premiums for the required insurance are estimated to be approximately $1,500 to $6,000 per year, but this cost can vary widely depending on the specific coverage and the franchisee's individual circumstances. Franchisees must also provide types and levels of insurance coverage required by the state in which they operate their business, other insurance required by law, and by their Office lease or mortgage.