What is the meaning of 'on an occurrence basis' in the context of a Counselor Realty franchise insurance policy?
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 insurance policy will cover claims arising from incidents that occur during the policy period, regardless of when the claim is actually filed.
For a Counselor Realty franchisee, this is significant because it ensures coverage for incidents that took place while the policy was active, even if a lawsuit or claim is brought years later. This type of coverage is beneficial in the real estate industry, where claims related to transactions or property conditions might surface long after the deal has closed.
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. Additionally, franchisees must also maintain errors and omissions insurance with a minimum limit of at least $1,000,000. Counselor Realty must be named as an additional insured on these policies, and the policies must include a waiver of subrogation, meaning the insurance company cannot seek to recover payments from Counselor Realty in the event of a claim. These requirements protect both the franchisee and Counselor Realty from potential liabilities arising from the business operations.