What is the minimum amount of professional liability insurance coverage required per occurrence or accident for an Engel & Volkers franchise?
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 and omissions, cyber liability/data breach and general commercial liability insurance) and such other forms of insurance as required by law or by Franchisor, in such minimum amounts as required by law or Franchisor from time to time, but not less than US $2 million for professional liability insurance per each occurren
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, franchisees must maintain professional liability insurance with a minimum coverage of US $2 million per occurrence or accident. This requirement is part of a broader set of insurance obligations that Engel & Volkers imposes to protect its brand and the entire franchise system. Franchisees are also required to maintain at least US $2 million per occurrence or accident for any other insurance. Engel & Volkers may modify these insurance requirements periodically.
This insurance coverage must be secured from approved insurance companies, as determined by Engel & Volkers. Franchisees must provide proof of insurance coverage within thirty days of the agreement's effective date and annually thereafter. Engel & Volkers also has the right to be named as an additional insured on all policies. Engel & Volkers may offer franchisees the opportunity to benefit from favorable insurance terms under its pool insurance arrangements.
It is important to note that Engel & Volkers does not guarantee that the required insurance will provide adequate coverage for the franchisee's specific needs. Franchisees are advised to consult with their own insurance advisors to determine the appropriate level of coverage beyond the minimum requirements set by Engel & Volkers. Compliance with insurance requirements is solely the franchisee's responsibility, and Engel & Volkers' review of insurance elements does not reduce this obligation.