What is the minimum aggregate liability coverage required for Healthsource Chiropractic's professional liability (malpractice) insurance for each doctor?
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
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 secure professional liability (malpractice) insurance for each doctor practicing in their franchise business. The minimum liability coverage required is $1,000,000 per occurrence and $3,000,000 in the aggregate. This insurance coverage is a mandatory expense for the franchisee.
In addition to professional liability insurance, Healthsource Chiropractic requires franchisees to maintain comprehensive commercial general liability and motor vehicle liability insurance with minimum coverage of $1,000,000 per occurrence and $3,000,000 in the aggregate. They must also carry worker's compensation and employer's liability insurance as mandated by law.
Healthsource Chiropractic also stipulates that all commercial general liability and professional liability insurance policies must name the franchisor (and related parties) as additional insureds. Should a franchisee fail to obtain or maintain the required insurance, Healthsource Chiropractic reserves the right to procure the necessary insurance on behalf of the franchisee, as detailed in Item 6 of the FDD. Franchisees are advised to consult with their own insurance professionals to determine appropriate coverage levels beyond the minimums specified by Healthsource Chiropractic.