Are Ledgers franchisees required to maintain business interruption insurance?
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's 2025 Franchise Disclosure Document, franchisees must obtain and maintain specific insurance coverage. This insurance coverage must adhere to state laws and any additional requirements mandated by Ledgers, potentially exceeding state law requirements. Ledgers must be named as an "additional insured" party on all insurance policies.
Ledgers specifies several types of required insurance, including "all risk" property insurance for the assets of the franchised business, workers' compensation and employer liability coverage (minimum $100,000 or higher if required by state law), comprehensive general liability insurance including contractual indemnity (minimum $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.
The requirement to maintain business interruption insurance means that Ledgers franchisees must have a policy in place that covers potential income loss due to events that disrupt their business operations. This is a standard practice in franchising to protect both the franchisee and franchisor from financial losses resulting from unforeseen circumstances. Franchisees should carefully review these insurance requirements and factor the costs into their financial projections.