What is the minimum aggregate liability coverage required for Healthsource Chiropractic's comprehensive commercial general liability and motor vehicle liability insurance?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
we periodically require and satisfy other insurance-related obligations. You must purchase (1) comprehensive commercial general liability and motor vehicle liability insurance containing minimum liability coverage of not less than $1,000,000 per occurrence and $3,000,000 in the aggregate, (2) worker's compensation and employer's liability insurance as required by law, with limits equal to or in excess of those required by law, (3) professional liability (malpractice) insurance, for each doctor practicing in your Franchise business, having limits of not less than $1,000,000 per occurrence and $3,000,000 in the aggregate and (4) any other insurance required by applicable law, rule, regulation, ordinance or licensing requirements. Deductibles must be in reasonable amounts and are subject to review and written approval by us. Your commercial general liability insurance policy must be an "occurrence" policy. If any policy is written on a "Claims Made" basis, you must purchase and maintain unlimited tail coverage that shall remain in effect following the termination or expiration of the Franchise Agreement and/or such policy. All commercial general liability insurance and professional liability (malpractice) insurance policies you purchase must name us (and, if we so request, our members, directors, employees, agents, and affiliates) as additional insureds. If you fail to obtain or maintain the insurance we specify, we may (but need not) obtain the insurance for you and the Clinic on your behalf (see Item 6). You should
consult with your own insurance agents, brokers, and attorneys to determine what types of coverages and what level of insurance protection you may need or desire, in addition to the coverages and minimum limits specified by us. The cost of your premiums will depend on the insurance carr
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 28–32)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, franchisees must maintain comprehensive commercial general liability and motor vehicle liability insurance with minimum liability coverage. This coverage must be no less than $1,000,000 per occurrence and $3,000,000 in the aggregate. This requirement ensures that Healthsource Chiropractic franchisees have adequate financial protection against potential liabilities arising from their business operations, such as accidents or injuries occurring on their premises or involving their vehicles.
In addition to the commercial general liability and motor vehicle liability insurance, Healthsource Chiropractic also requires franchisees to maintain worker's compensation and employer's liability insurance as required by law, professional liability (malpractice) insurance for each doctor practicing in the franchise business with limits of not less than $1,000,000 per occurrence and $3,000,000 in the aggregate, and any other insurance required by applicable law. The deductibles for these policies must be in reasonable amounts and are subject to review and written approval by Healthsource Chiropractic.
Healthsource Chiropractic mandates that the commercial general liability insurance policy be an "occurrence" policy. If a policy is written on a "Claims Made" basis, the franchisee must purchase and maintain unlimited tail coverage that remains effective after the termination or expiration of the Franchise Agreement or the policy. Furthermore, all commercial general liability insurance and professional liability (malpractice) insurance policies must name Healthsource Chiropractic (and its members, directors, employees, agents, and affiliates, if requested) as additional insureds. If a franchisee fails to obtain or maintain the specified insurance, Healthsource Chiropractic has the option, but not the obligation, to obtain the insurance on behalf of the franchisee and the clinic. Prospective franchisees should consult with their own insurance agents, brokers, and attorneys to determine the types and levels of insurance protection they may need or desire, beyond the minimum requirements set by Healthsource Chiropractic. The cost of premiums will vary based on the insurance carrier's charges, terms of payment, and the franchisee's insurance and payment histories.