Is an Umbrella Liability policy required or recommended for Learningrx franchisees?
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 several insurance policies. These include property insurance, general liability coverage of at least $1,000,000 per occurrence and $2,000,000 annual aggregate, corporal punishment & hired and non-owned auto liability coverage of $1,000,000 per occurrence, sexual abuse and molestation coverage of not less than $1,000,000 per occurrence and $1,000,000 annual aggregate, and workers' compensation based on state statutory requirements. If in-home training is approved, special coverage is also necessary.
Learningrx franchisees must include LearningRx Franchise Corporation as an additional insured and Grantor of Franchise on their insurance policies. Learningrx retains the right to modify the required insurance categories and amounts as deemed necessary. Compliance with all insurance requirements outlined in the Operations Manual and adherence to state or federal law is mandatory.
While several specific insurance policies are mandated, the FDD states that an Umbrella Liability policy is recommended, but not explicitly required. Franchisees should carefully consider this recommendation in consultation with their insurance provider to ensure adequate coverage for their Learningrx center.