What is the minimum Cyber Liability insurance coverage that Expense Reduction Analysts franchisees must maintain?
Expense_Reduction_Analysts Franchise · 2025 FDDAnswer from 2025 FDD Document
mises without our prior written consent.
Insurance
You must purchase and maintain a policy or policies of comprehensive general liability insurance covering all Consulting Business assets, personnel, and activities on an occurrence basis with a combined single limit for bodily injury, death, or property damage of not less than one million US Dollars ($1,000,000). We may increase the minimum coverage requirement annually, if necessary, to reflect inflation or other changes in circumstances. You may also carry (1) casualty insurance in a minimum amount equal to the replacement value of your interest in your Consulting Business furniture, fixtures, and equipment, and (2) business interruption insurance in an amount sufficient to cover salary or wages of key personnel, and other fixed expenses. You must maintain consultants' professional liability (errors and omissions) coverage of not less than one million US Dollars ($1,000,000). You must also maintain Cyber Liability insurance coverage of not less than five hundred thousand ($500,000). 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 th
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 21–25)
What This Means (2025 FDD)
According to the 2025 Expense Reduction Analysts Franchise Disclosure Document, franchisees are required to maintain Cyber Liability insurance coverage with a minimum of $500,000. This insurance is in addition to other required policies, such as comprehensive general liability insurance and consultants' professional liability (errors and omissions) coverage, each with a minimum of $1,000,000. Expense Reduction Analysts also mandates workers' compensation insurance as required by state law. Expense Reduction Analysts may increase the minimum coverage requirements annually to account for inflation or changing circumstances.
Expense Reduction Analysts requires franchisees to name them as a certificate holder and an additional insured on both the general and professional liability policies. Franchisees must provide Expense Reduction Analysts with a Certificate of Insurance (COI) before commencing operations and ensure a notice of cancellation endorsement is in effect for both policies. Furthermore, franchisees must provide proof of insurance renewal with the then-current required coverage and confirmation that Expense Reduction Analysts is included as an additional insured.
For a prospective Expense Reduction Analysts franchisee, this means allocating funds for the various insurance policies to meet the franchisor's requirements. Failing to maintain the required insurance coverage could result in a breach of the franchise agreement and potential penalties. It is important to factor in these insurance costs when evaluating the overall investment and operational expenses of the franchise.