Must Expense Reduction Analysts be named as the certificate holder on the franchisee's insurance policies?
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 Expense Reduction Analysts's 2025 Franchise Disclosure Document, franchisees are required to secure and maintain several insurance policies for their Consulting Business. These include 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 minimum coverage requirements may be increased annually by Expense Reduction Analysts to adjust for inflation or other changes.
Expense Reduction Analysts requires franchisees to name them as the certificate holder and also as an additional insured on both the general and professional liability insurance policies. Franchisees must provide Expense Reduction Analysts with a Certificate of Insurance (COI) as proof of insurance before commencing operations. Additionally, the insurance policies must include a notice of cancellation endorsement.
Franchisees must also provide Expense Reduction Analysts with proof of insurance renewal in the form of a Certificate of Insurance, ensuring that the policy includes Expense Reduction Analysts as an additional insured. This requirement ensures that Expense Reduction Analysts is protected and informed about the franchisee's insurance coverage throughout the term of the franchise agreement.