What is the minimum amount of General Liability insurance, including Professional Liability coverage, that Learningrx requires?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
based on their use of designated or approved suppliers.
For all LearningRx Centers, you will maintain and purchase insurance in the following amounts and categories: Property insurance adequate to replace the contents of the Center; General Liability, including, but not limited to Professional Liability coverage in the amount of not less than $1,000,000 per occurrence and $2,000,000 annual aggregate; Corporal Punishment & Hired and Non-Owned Auto Liability coverage in the amount of $1,000,000 per occurrence; Sexual Abuse and Molestation not less than $1,000,000 per occurrence and $1,000,000 annual aggregate; Workers' Compensation based on the statutory requirement of your state. You must also carry special coverage if we approve any request for you to provide in-home training. An Umbrella Liability policy is also recommended.
You must maintain insurance policies covering your entity and LearningRx Franchise Corporation as an "additional insured" and "Grantor of Franchise". We have the right to add categories and adjust the amounts required periodically as we deem necessary. You are required to comply with all property, liability, and other insurance required in the Operations Manual at all times. Yo
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 22–24)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, franchisees are required to maintain General Liability insurance, which includes Professional Liability coverage, with a minimum of $1,000,000 per occurrence and $2,000,000 annual aggregate. This insurance coverage is a standard requirement to protect both the franchisee and Learningrx from potential liabilities arising from the operation of the Learningrx center.
In addition to General Liability coverage, Learningrx also mandates specific insurance types and amounts, including Property insurance, Corporal Punishment & Hired and Non-Owned Auto Liability coverage at $1,000,000 per occurrence, Sexual Abuse and Molestation coverage at $1,000,000 per occurrence and $1,000,000 annual aggregate, and Workers' Compensation based on state statutory requirements. Franchisees must also secure special coverage if they offer in-home training services. While not mandatory, Learningrx recommends an Umbrella Liability policy for added protection.
Learningrx requires that all insurance policies name LearningRx Franchise Corporation as an additional insured and Grantor of Franchise. This ensures that Learningrx is protected under the franchisee's insurance policies. It is important to note that Learningrx retains the right to modify the required insurance categories and amounts periodically as deemed necessary. Franchisees are obligated to adhere to all insurance requirements outlined in the Operations Manual and any additional requirements mandated by state or federal law, ensuring comprehensive coverage and compliance.