Is worker's compensation and employer's liability insurance required for a Healthsource Chiropractic franchise?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
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
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, Healthsource Chiropractic requires franchisees to maintain certain insurance coverages, but it does not explicitly state that worker's compensation and employer's liability insurance are mandatory. The agreement states that franchisees must maintain comprehensive commercial general liability and motor vehicle liability insurance.
Healthsource Chiropractic mandates that franchisees secure insurance policies from reputable carriers within the state where their clinic is situated. However, the specific types and amounts of coverage beyond general and motor vehicle liability are not detailed, leaving it to the franchisee to consult with their own insurance professionals to determine appropriate levels of protection.
The FDD emphasizes that the insurance requirements set by Healthsource Chiropractic are primarily for its own protection, and franchisees should seek independent advice to ascertain their own needs. While the franchisor specifies minimum insurance requirements, it is the franchisee's responsibility to ensure they have adequate coverage for their specific circumstances, including potential liabilities related to employees.
Therefore, while not explicitly required, worker's compensation and employer's liability insurance may be necessary to adequately protect the franchisee from potential liabilities related to employees. A prospective franchisee should clarify with Healthsource Chiropractic what specific insurance policies are required to operate a franchise.