What are the minimum liability limits per occurrence for Healthsource Chiropractic's professional liability (malpractice) insurance for each doctor?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
nce**
a. Before you open the Franchise and during any Term of this Agreement, you must maintain in force, under policies of insurance issued by carriers in good standing in the state where your clinic is located: (1) comprehensive commercial general liability and motor vehicle liability insurance against claims for bodily and personal injury, death and property damage
caused by or occurring in conjunction with the operation of the Franchise or otherwise in conjunction with your conduct of the Franchise business pursuant to this Agreement, under one or more policies of 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 statute; (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. We may periodically increase or decrease the amounts of coverage required under these insurance policies, and/or require different or additional kinds of insurance, including excess liability insurance, to reflect inflation, identification of new risks, changes in law or standards of liability, higher damage awards, or other relevant changes in circumstances. In addition to the foregoing require
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, franchisees must maintain 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.
Healthsource Chiropractic retains the right to periodically adjust these coverage amounts, or to mandate different or additional types of insurance. These adjustments may be due to factors such as inflation, the identification of new risks, changes in laws or liability standards, or higher damage awards.
In addition to the specifically required policies, Healthsource Chiropractic highly recommends that franchisees obtain property damage, business interruption, employment practices, cyber liability, and electronic data loss insurance coverage. Compliance with state minimum insurance requirements does not relieve the franchisee from meeting the contractual insurance requirements outlined in the Franchise Agreement.