What is the minimum liability coverage per occurrence 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 are required to maintain professional liability (malpractice) insurance for each doctor practicing in their franchise business. The minimum liability coverage must be at least $1,000,000 per occurrence and $3,000,000 in the aggregate. This insurance requirement is in addition to other insurance policies franchisees must secure.
Healthsource Chiropractic also mandates that franchisees obtain comprehensive commercial general liability and motor vehicle liability insurance with a minimum coverage of $1,000,000 per occurrence and $3,000,000 in the aggregate. Additionally, franchisees must have worker's compensation and employer's liability insurance as required by law.
It is important to note that Healthsource Chiropractic requires to be named as an additional insured on the commercial general liability and professional liability (malpractice) insurance policies. If a franchisee fails to obtain or maintain the specified insurance, Healthsource Chiropractic has the option, but not the obligation, to secure the insurance on behalf of the franchisee and the clinic. Franchisees are advised to 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 minimums specified by Healthsource Chiropractic.