Does the insurance coverage for a Counselor Realty franchise need to be on an occurrence basis?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
Business and any change in the Franchisee's organizational documents.
- 8.2 Insurance. You must maintain types and levels of insurance coverage required by the state in which you operate your Business. You also must maintain other insurance required by law, and by your Office (including any Additional Office and Extension Office) lease or mortgage, and errors and omissions insurance coverage. 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 omission insurance with a minimum limit of at least $1,000,000. Insurance shall be with insurers and on forms acceptable to us, shall name Counselor as an additional insured, and waive subrogation. If we buy such insurance because you fail to do so (which we may, but ar
Source: Item 22 — CONTRACTS (FDD page 32)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, franchisees are required to maintain general liability insurance on an occurrence basis. This means the policy covers incidents that occur during the policy period, regardless of when a claim is filed.
Specifically, the general liability insurance must have a minimum limit of at least $1,000,000 per occurrence and $2,000,000 in the aggregate. In addition to general liability coverage, franchisees must also maintain errors and omissions insurance with a minimum limit of at least $1,000,000.
The insurance policies must be with insurers and on forms acceptable to Counselor Realty, and must name Counselor Realty as an additional insured and waive subrogation rights. If a franchisee fails to maintain the required insurance, Counselor Realty has the option, but not the obligation, to purchase the insurance and seek immediate reimbursement from the franchisee.