What is the minimum aggregate liability coverage required for professional liability (malpractice) insurance for each doctor practicing in a Degree Wellness franchise?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
which we or our affiliates are approved suppliers (see below).
You must obtain and maintain, at your own expense, the insurance coverage that we periodically require and satisfy other insurance-related obligations. You must purchase (1) comprehensive commercial general liability and motor vehicle liability insurance containing minimum liability coverage of not less than $1,000,000 per occurrence and $3,000,000 in the aggregate, (2) worker's compensation and employer's liability insurance as required by law, with limits equal to or in excess of those required by law, (3) professional liability (malpractice) insurance, for each doctor pract
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 26–29)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, franchisees must obtain and maintain professional liability (malpractice) insurance for each doctor practicing in their franchise business. While the document specifies the need for this insurance, it does not state the minimum aggregate liability coverage required.
The FDD does mention that franchisees must purchase comprehensive commercial general liability and motor vehicle liability insurance with minimum liability coverage of not less than $1,000,000 per occurrence and $3,000,000 in the aggregate. However, this applies to general and motor vehicle liability, not professional malpractice liability.
Because the specific amount of aggregate liability coverage for malpractice insurance is not specified in this excerpt, prospective Degree Wellness franchisees should directly ask the franchisor for clarification on the minimum required coverage levels to ensure full compliance and adequate protection for their business and medical staff.