Are Expense Reduction Analysts franchisees required to carry workers compensation insurance?
Expense_Reduction_Analysts Franchise · 2025 FDDAnswer from 2025 FDD Document
You must carry workers compensation insurance as required by the State where you carry on your Consulting Business. We may increase the minimum coverage requirement annually, if necessary, to reflect inflation or other changes in circumstances. If you have employees, you must maintain policies of workers' compensation insurance, disability insurance, and any other types of insurance required by applicable law. You must name us as the certificate holder) and add us as an additional insured to both your general and professional liability policies of insurance and provide us with a copy of the proof of insurance by submitting a Certificate of Insurance ("COI") prior to operating your Consulting Business. You must ensure that a notice of cancellation endorsement is in effect for both policies. You must provide us with (i) proof in the form of a Certificate of Insurance that you have renewed the insurance policy for the then-current required coverage as set forth in the Manuals, and (ii) that the insurance policy includes us as an additional insured.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 21–25)
What This Means (2025 FDD)
According to Expense Reduction Analysts's 2025 Franchise Disclosure Document, franchisees are required to carry workers compensation insurance. The specific requirement depends on the state where the franchisee operates their Consulting Business, as they must carry workers compensation insurance as required by that state.
If the Expense Reduction Analysts franchisee has employees, they must maintain policies for workers' compensation insurance, disability insurance, and any other types of insurance required by applicable law. This ensures that the franchisee complies with all legal requirements related to employee protection.
Expense Reduction Analysts also requires franchisees to maintain other types of insurance, including comprehensive general liability insurance with a minimum coverage of $1,000,000, consultant's professional liability (errors and omissions) coverage of not less than $1,000,000 and Cyber Liability insurance coverage of not less than $500,000. The franchisee must name Expense Reduction Analysts as a certificate holder and additional insured on their general and professional liability policies. They must also provide Expense Reduction Analysts with proof of insurance and a notice of cancellation endorsement for both policies.