What minimum liability coverage per occurrence is required for Healthsource Chiropractic's comprehensive commercial general liability and motor vehicle liability insurance?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
items for which we or our affiliates are approved suppliers (see below).
You must obtain and maintain, at your own expense, the insurance coverage that 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 a minimum liability coverage of $1,000,000 per occurrence and $3,000,000 in the aggregate. This requirement ensures that Healthsource Chiropractic franchisees have sufficient financial protection against potential lawsuits or claims arising from accidents or injuries on their premises or involving their vehicles.
In addition to commercial general liability and motor vehicle liability insurance, Healthsource Chiropractic also requires franchisees to carry worker's compensation and employer's liability insurance as required by law, as well as professional liability (malpractice) insurance for each practicing doctor, with limits of not less than $1,000,000 per occurrence and $3,000,000 in the aggregate. Franchisees must also maintain any other insurance required by applicable law, rule, regulation, ordinance, or licensing requirements.
The FDD specifies that deductibles must be in reasonable amounts and are subject to review and written approval by Healthsource Chiropractic. Furthermore, the commercial general liability insurance policy must be an "occurrence" policy. If any policy is written on a "Claims Made" basis, the franchisee must purchase and maintain unlimited tail coverage that remains 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 must name Healthsource Chiropractic as an additional insured. Franchisees are advised to consult with their own insurance agents, brokers, and attorneys to determine what types of coverages and what level of insurance protection they may need or desire, in addition to the coverages and minimum limits specified by Healthsource Chiropractic.