What are the minimum public liability insurance limits an Engel & Volkers franchisee must maintain?
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 are required to maintain specific insurance policies throughout the term of their Franchise Agreement, with Engel & Volkers named as an additional insured. The minimum public liability insurance limits are set at $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 that franchisees obtain cyber risk/data breach insurance. Franchisees must also maintain workers' compensation and other liability insurance as required by state law.
Engel & Volkers retains the right to modify these insurance requirements periodically. Franchisees will receive written notice of any changes and must promptly purchase insurance that complies with the new standards. This ensures that Engel & Volkers and its franchisees are adequately protected against potential liabilities arising from business operations.
For a prospective Engel & Volkers franchisee, this means budgeting for comprehensive insurance coverage that meets or exceeds these minimum limits. Failure to maintain the required insurance could result in a breach of the Franchise Agreement. It is important to consult with an insurance professional to determine the appropriate level of coverage and to stay informed of any changes to the insurance requirements communicated by Engel & Volkers.