Can Expense Reduction Analysts increase the required insurance coverage amounts?
Expense_Reduction_Analysts Franchise · 2025 FDDAnswer from 2025 FDD Document
ny content that Franchisor, in its business judgment, deems to be in violation of Franchisor's System standards or social media policy. You also agree, upon Franchisor's request, to provide Franchisor with the login id and passwords for each social media page and profile that You create to promote Your Franchised Business. You further agree that Franchisor shall have the right to use such login credentials to remove any content that Franchisor requested that You delete but which You failed to remove.
22. INSURANCE
22.1 Insurance Policies
- (1) You must take out and maintain in full force and effect throughout the Term, at Your Cost, insurance policies including but not limited to 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 for at least the limits and coverages specified by the Franchisor in the ERA Manuals as may be updated from time to time, and on terms and conditions acceptable to the Franchisor. You must submit to the Franchisor a copy of your ACORD 25 Certificate of Insurance (or the then current equivalent as required by the Franchisor) each year within 10 days of Your insurance renewal period for the entire duration of the Agreement, and evidence that You have paid such premiums.
- (2) You must buy insurance only from reputable carriers rated A-VIII or better by A.M. Best and Company, Inc. (or similar criteria as Franchisor periodically specifies), unless the Franchisor designates specific carriers from which You must purchase coverage (in which case You may only purchase from the designated carrier(s)). 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 p
Source: Item 23 — RECEIPTS (FDD pages 58–215)
What This Means (2025 FDD)
According to Expense Reduction Analysts' 2025 Franchise Disclosure Document, Expense Reduction Analysts can periodically increase the required insurance coverage amounts for franchisees. The franchisee is responsible for maintaining insurance policies throughout the term of the agreement. These 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 coverage amounts or require different or additional insurance to reflect inflation, new risks, changes in law, 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 it designates as additional insureds. The policies must also provide for thirty (30) days' prior written notice to Expense Reduction Analysts of a policy's material modification or cancellation.
The franchisee must provide Expense Reduction Analysts with a copy of their ACORD 25 Certificate of Insurance (or the then current equivalent) each year within 10 days of their insurance renewal period. They must also provide evidence that they have paid the premiums. Franchisees must buy insurance only from reputable carriers rated A-VIII or better by A.M. Best and Company, Inc., unless Expense Reduction Analysts designates specific carriers.
The cost of premiums will depend on the insurance carrier's charges, terms of payment, and the franchisee's insurance and payment histories. The franchisee is responsible for the timely delivery of certificates of all required insurance to Expense Reduction Analysts, each of which must contain a statement by the insurer that the policy will not be cancelled or materially altered without at least thirty days' notice.