What property damage 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 during the term of their Franchise Agreement. This includes naming Engel & Volkers as an additional insured on their policies.
The required insurance coverage includes property damage insurance with a minimum limit of $2,000,000 for each accident. In addition to property damage coverage, Engel & Volkers requires franchisees to maintain professional liability (real estate errors and omissions) insurance of $2,000,000 per occurrence, and bodily injury coverage of $2,000,000 per person and $2,000,000 per accident. Engel & Volkers also recommends 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 the required types and amounts of insurance coverage. Franchisees are obligated to purchase insurance that conforms to these new standards immediately upon receiving written notice. This ensures that franchisees maintain adequate coverage and comply with Engel & Volkers's evolving requirements.