For a Ledgers franchise, who is responsible for obtaining and maintaining required insurance coverage?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
eparers must obtain a paid preparer tax identification number ("PTIN") from the IRS.
Insurance**.** You must obtain and maintain, at your own expense, such insurance coverage as required by your state laws. Moreover, you must obtain and maintain insurance coverage as we require, which may exceed insurance coverage required by your state laws. All insurance policies must name us as an "additional insured" party.
Our current insurance specifications are as follows:
- i "all risk" property insurance coverage for assets of the Franchised Business;
- ii workers' compensation insurance and employer liability coverage with a minimum limit of $100,000 or higher if your state law requires;
- iii comprehensive general liability insurance which includes contractual indemnity with a minimum liability coverage of $1,000,000 per occurrence, or higher if your state law requires;
- iv business interruption insurance;
- v commercial automobile liability insurance of at least $1,000,000 or higher if your state law requires;
- vi
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 23–25)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, franchisees are responsible for securing and maintaining the necessary insurance coverage at their own expense. This includes meeting the minimum insurance requirements mandated by state laws, as well as any additional coverage specified by Ledgers, which may exceed state requirements.
Ledgers requires franchisees to maintain several types of insurance. These include "all risk" property insurance for the business's assets, workers' compensation and employer liability coverage (minimum $100,000 or higher if required by state law), comprehensive general liability insurance including contractual indemnity ($1,000,000 per occurrence, or higher if required by state law), business interruption insurance, commercial automobile liability insurance (at least $1,000,000 or higher if required by state law), and professional liability insurance for errors and omissions in the amount of $1,000,000.
All insurance policies must list Ledgers as an "additional insured" party. This requirement ensures that Ledgers is protected under the franchisee's insurance policies, adding an extra layer of security for the franchisor. Franchisees need to factor in these insurance costs when assessing the overall investment and operational expenses of a Ledgers franchise.