What bodily injury insurance coverage is required for an Engel & Volkers franchise?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
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One or more of our officers may own nominal interests in certain of our suppliers that are public companies.
You will need to maintain in effect at all times during the term of the Franchise Agreement a policy or policies of insurance, naming us as an additional insured, with public liability limits of no less than the following amounts: professional liability (real estate errors and omissions) – $2,000,000 each occurrence, bodily injury - $2,000,000 each person; $2,000,000 each accident, and property damage - $2,000,000 each accident. We also recommend a cyber risk /data breach insurance. You must also maintain workers' compensation and other liability insurance as required by state law. We may periodically add to, modify, or delete the types and amounts of insurance coverage that y
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 38–40)
What This Means (2025 FDD)
According to Engel & Volkers's 2025 Franchise Disclosure Document, franchisees must maintain specific insurance coverage, including bodily injury coverage. Engel & Volkers requires a minimum of $2,000,000 for each person and $2,000,000 for each accident related to bodily injury. This coverage must name Engel & Volkers as an additional insured party.
In addition to bodily injury coverage, Engel & Volkers franchisees must also maintain professional liability (real estate errors and omissions) insurance of $2,000,000 per occurrence and property damage insurance of $2,000,000 per accident. The FDD also recommends cyber risk/data breach insurance. Furthermore, franchisees are required to maintain workers' compensation and other liability insurance as mandated by state law.
Engel & Volkers retains the right to modify these insurance requirements, including the types and amounts of coverage. Franchisees will be notified of any changes in writing and must promptly adjust their insurance policies to comply with the new standards. This ensures that Engel & Volkers and its franchisees are adequately protected against potential liabilities and risks associated with operating a real estate brokerage.