What is the minimum amount of Sexual Abuse and Molestation 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 Sexual Abuse and Molestation coverage of not less than $1,000,000 per occurrence and $1,000,000 annual aggregate. This insurance coverage is a standard requirement to protect both the franchisee and Learningrx from potential liabilities arising from such incidents.
In addition to Sexual Abuse and Molestation coverage, Learningrx also mandates other insurance policies, including property insurance, general liability coverage of not less than $1,000,000 per occurrence and $2,000,000 annual aggregate, and Corporal Punishment & Hired and Non-Owned Auto Liability coverage of $1,000,000 per occurrence. Franchisees must also carry Workers' Compensation based on the statutory requirement of their state. Furthermore, if a franchisee provides in-home training, they must obtain special coverage for that service. While not mandatory, Learningrx recommends an Umbrella Liability policy.
Learningrx requires that all insurance policies cover the franchisee's entity and LearningRx Franchise Corporation as an "additional insured" and "Grantor of Franchise." This ensures that Learningrx is also protected under the franchisee's insurance policies. The franchisor retains the right to add categories and adjust the required insurance amounts periodically as deemed necessary. Franchisees are obligated to comply with all property, liability, and other insurance requirements outlined in the Operations Manual and must also procure and maintain all other insurance required by state or federal law. Failing to maintain the required insurance coverage could result in a breach of the franchise agreement.