What is the minimum cyber security insurance coverage required for an Expense Reduction Analysts franchise?
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, franchisees must maintain cyber security insurance with a minimum coverage of $500,000. This insurance is one of several policies Expense Reduction Analysts requires to be kept in full force and effect throughout the term of the franchise agreement. Other required policies include general liability and professional indemnity (E&O), each with a minimum coverage of $1,000,000.
Expense Reduction Analysts specifies that the insurance policies must be consistent with the limits and coverages detailed in the ERA Manuals, which may be updated periodically. Franchisees must provide Expense Reduction Analysts with a copy of their ACORD 25 Certificate of Insurance (or its equivalent) annually, within 10 days of their insurance renewal period, as proof of coverage and premium payment.
Expense Reduction Analysts mandates that franchisees obtain insurance from reputable carriers with a rating of A-VIII or better by A.M. Best and Company, Inc., unless Expense Reduction Analysts designates specific carriers. Expense Reduction Analysts retains the right to increase coverage amounts or require different or additional insurance to reflect factors like inflation, new risks, legal changes, or economic conditions. All policies must name Expense Reduction Analysts as an additional insured and provide 30 days' prior written notice of any material modification or cancellation.
If a franchisee fails to maintain the required insurance coverage, Expense Reduction Analysts has the right, but not the obligation, to procure the necessary insurance. In such cases, the franchisee must reimburse Expense Reduction Analysts for all costs incurred, including premium payments, and pay an administrative fee for securing the insurance on their behalf. Franchisees are also required to promptly report any claims or events that may lead to a claim to both the insurer and Expense Reduction Analysts.