Can the Expense Reduction Analysts Franchisor increase the required insurance coverage amounts?
Expense_Reduction_Analysts Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchisor may periodically increase the amounts of coverage required under these insurance policies and/or require different or additional insurance coverage to reflect inflation, identification of new risks, changes in law or standards of liability, higher damage awards, changing economic conditions, or other relevant changes in circumstances such as cyber liability and workers comp liability. All insurance policies You purchase must name the Franchisor and any affiliate the Franchisor designates as additional insureds and provide for thirty (30) days' prior written notice to the Franchisor of a policy's material modification or cancellation, and provide us with a copy of the proof of insurance by submitting a Certificate of Insurance ("COI") prior to operating your Consulting Business.
Source: Item 23 — RECEIPTS (FDD pages 58–215)
What This Means (2025 FDD)
According to Expense Reduction Analysts' 2025 Franchise Disclosure Document, the franchisor has the right to periodically increase the required insurance coverage amounts. The initial required insurance policies include general liability (currently not less than $1,000,000), professional indemnity (E&O) (currently not less than $1,000,000), and cyber security (currently not less than $500,000).
Expense Reduction Analysts may increase these amounts or require different or additional insurance coverage to reflect inflation, identification of new risks, changes in law or standards of liability, higher damage awards, changing economic conditions, or other relevant changes in circumstances such as cyber liability and workers comp liability. All insurance policies must name Expense Reduction Analysts and any affiliate they designate as additional insureds and provide for thirty (30) days' prior written notice to Expense Reduction Analysts of a policy's material modification or cancellation.
If a franchisee fails to maintain the required insurance coverage, Expense Reduction Analysts has the right to procure the insurance coverage. In this case, the franchisee must reimburse Expense Reduction Analysts for the costs incurred, including premium amounts paid, and pay Expense Reduction Analysts its then-current administrative fee for securing the insurance on the franchisee's behalf. Franchisees must promptly report any claim, or any event which may give rise to a claim, to both the insurer and Expense Reduction Analysts.