What is the minimum amount of insurance coverage, other than professional liability, that Engel & Volkers franchisees must maintain per occurrence or accident?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
ing payments provisions. Franchisee and each of its owners agree that this liquidated damages provision does not give Franchisor an adequate remedy at law for any default under, or for the enforcement of, any provision of this Agreement other than the ongoing payments provisions. In addition, the parties agree that nothing herein shall affect a party's ability to seek an injunction or other extraordinary or equitable relief, or possession or disposition of, or other relief relating to, the franchised Residential Real Estate Brokerage hereunder, as otherwise provided in this Agreement.
18. Insurance Coverage
- 18.1 To safeguard its Residential Real Estate Brokerage and to protect itself and the entire ENGEL & VÖLKERS System against loss, Franchisee will purchase, and at all times during the Term maintain in full force and effect, at Franchisee's expense, customary insurance coverage (e.g., fire, burglary, theft, damage from piped water, storm, financial liability, business interruption arising from any one of the foregoing causes, employee honesty and liability, professional liability/errors a
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers's 2025 Franchise Disclosure Document, franchisees must maintain a minimum of $2 million per occurrence or accident for insurance coverage, excluding professional liability insurance. This requirement is part of the broader insurance obligations Engel & Volkers places on its franchisees to protect their business and the Engel & Volkers system.
This insurance coverage includes customary insurance such as fire, burglary, theft, damage from piped water, storm, financial liability, business interruption, employee honesty and liability, cyber liability/data breach, and general commercial liability insurance. Engel & Volkers may modify the required types and amounts of coverage with written notice to the franchisee. Franchisees must provide proof of insurance coverage to Engel & Volkers and maintain this coverage throughout the term of the agreement.
It is important to note that Engel & Volkers does not guarantee that the required insurance will provide adequate coverage for the franchisee. Franchisees are advised to consult with their own insurance advisors to determine the level of insurance protection they need beyond the minimum requirements set by Engel & Volkers. Franchisees also have the opportunity to benefit from Engel & Volkers' pool insurance arrangements, if any, which may offer favorable terms.