Who is responsible for obtaining and managing the Licensed Provider's malpractice insurance and other necessary insurance coverages for a Healthsource Chiropractic clinic?

According to the 2025 Healthsource Chiropractic Franchise Agreement, the Licensed Provider is responsible for obtaining and maintaining their own malpractice insurance and other necessary insurance coverages. While Healthsource Chiropractic specifies minimum coverage requirements, the Licensed Provider must consult with their own insurance agents, brokers, and attorneys to determine the types and levels of insurance protection they need or desire, beyond what Healthsource Chiropractic mandates.

Healthsource Chiropractic requires that the Licensed Provider's commercial general liability insurance policy be an "occurrence" policy, naming Management Company, HealthSource, and their respective owners, directors, employees, agents, and affiliates as additional insured parties on a primary and noncontributory basis. The malpractice policy for each doctor providing services at the clinic must also include Management Company and HealthSource as additional insured parties to the fullest extent possible. If any policies are written on a "Claims Made" basis, the Licensed Provider must purchase and maintain unlimited tail coverage that remains effective after the agreement terminates.

Even with any insurance coverage maintained by the Management Company, the Licensed Provider remains responsible for all losses, damages, and contractual liabilities to third parties arising from the performance of Licensed Provider Services or the operation of the clinic. This includes claims for property damage, injury, illness, or death. The Licensed Provider's obligation to maintain insurance coverage is not reduced by any separate insurance maintained by the Management Company, nor does the Management Company's insurance relieve the Licensed Provider of their obligations under the agreement.

In summary, while Healthsource Chiropractic sets minimum insurance requirements and may maintain its own insurance, the ultimate responsibility for obtaining adequate insurance coverage and managing those policies rests with the Licensed Provider. The Licensed Provider is advised to seek independent advice to ensure they have sufficient protection.