What is the estimated cost range for insurance for an Engel & Volkers franchise?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
ributions described in Item 6, you will need to advertise locally to help increase name recognition in your market.
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- You will need to purchase and 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/data breach insurance. You must also maintain workers' compensation and other liability insurance as required by sta
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 30–38)
What This Means (2025 FDD)
According to Engel & Volkers's 2025 Franchise Disclosure Document, franchisees must secure and maintain insurance policies throughout the term of the Franchise Agreement. Engel & Volkers requires being named as an additional insured on these policies.
The minimum public liability limits are $2,000,000 per occurrence for professional liability (real estate errors and omissions), $2,000,000 per person for bodily injury, $2,000,000 per accident for bodily injury, and $2,000,000 per accident for property damage. Engel & Volkers also recommends cyber/data breach insurance. Franchisees must also maintain workers' compensation and other liability insurance as mandated by state law.
It is important to note that Engel & Volkers retains the right to modify the types and amounts of insurance coverage required. The FDD does not specify the estimated cost range for these insurance policies, but it is crucial for prospective franchisees to factor in these potentially substantial and ongoing insurance expenses when evaluating the overall financial feasibility of the franchise.