What are the minimum coverage limits required per occurrence and in the aggregate for professional liability (malpractice) insurance for each doctor providing Licensed Provider Services for Degree Wellness?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
MENT SHALL BE INTERPRETED AS DIRECTING OR INFLUENCING SUCH REFERRALS. NONE OF MANAGEMENT COMPANY'S SERVICES HEREUNDER SHALL CONSTITUTE OBLIGATIONS OF MANAGEMENT COMPANY TO GENERATE PATIENTS TO LICENSED PROVIDER.
8. Insurance.
- 8.1 During the Agreement Term, Licensed Provider must maintain in force, under policies of insurance issued by carriers in good standing in the state where the Premises is located: (1) comprehensive commercial general liability and motor vehicle liability insurance against claims for bodily and personal injury, death and property damage caused by or occurring in conjunction with the operation of the Studio or otherwise in conjunction with the performance of the Licensed Provider Services pursuant to this Agreement, under one or more policies of 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 statute; (3) professional liability (malpractice) insurance, for each doctor providing the Licensed Provider Services, having limits of not less than $1,000,000 per occurrence and $3,000,000 in the aggregate; and (4) any other insurance required by applicable law, rule, regulation, ordinance or licensing requirements. Management Company may periodically increase or decrease the amounts of coverage required under these insurance policies, and/or require different or additional kinds of insurance, including excess liability insurance, to reflect inflation, identification of new risks, changes in law or standards of liability, higher damage awards, or other relevant changes
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 63–66)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, each doctor providing Licensed Provider Services must maintain professional liability (malpractice) insurance with minimum coverage limits of $1,000,000 per occurrence and $3,000,000 in the aggregate. This requirement ensures that there is adequate financial protection in place to cover potential claims arising from professional negligence or malpractice.
This insurance coverage is crucial for protecting both the doctor and Degree Wellness from financial losses due to lawsuits or claims. The per occurrence limit covers each individual incident, while the aggregate limit covers the total amount the policy will pay out during the policy term.
Degree Wellness also retains the right to periodically adjust the required coverage amounts to reflect changes in inflation, legal standards, or other relevant circumstances. It is important to note that meeting state minimum insurance requirements does not relieve the franchisee from meeting the contractual insurance requirements outlined in the agreement with Degree Wellness.