Is errors and omissions insurance coverage required for a Counselor Realty franchise?

According to Counselor Realty's 2025 Franchise Disclosure Document, errors and omissions insurance coverage is required. Franchisees 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. Additionally, they must have 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 if the franchisee does not already carry acceptable coverage.

This requirement ensures that Counselor Realty franchisees are protected from potential liabilities arising from their business operations. Errors and omissions insurance typically covers claims resulting from negligence or mistakes in the professional services provided. The general liability insurance protects against common risks such as bodily injury or property damage.

The estimated cost for insurance, ranging from $1,500 to $6,000 annually, is part of the initial investment a franchisee should consider. This cost can vary based on the coverage and the insurance provider. It is important for prospective franchisees to factor in these ongoing insurance expenses when evaluating the financial feasibility of opening a Counselor Realty franchise.

Counselor Realty also requires franchisees to provide types and levels of insurance coverage required by the state in which they operate their business, and other insurance required by law, and by their Office lease or mortgage.