For Ledgers franchises, am I required to obtain 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 required to obtain and maintain insurance coverage. This includes coverage mandated by state laws, as well as additional coverage that Ledgers requires, which may exceed state law requirements. All insurance policies must name Ledgers as an "additional insured" party.
The specific insurance requirements include "all risk" property insurance for the franchise's assets, workers' compensation and employer liability coverage with a minimum limit of $100,000 (or higher if required by state law), comprehensive general liability insurance with a minimum liability coverage of $1,000,000 per occurrence (or higher if required by state law), business interruption insurance, commercial automobile liability insurance of 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.
This requirement ensures that Ledgers franchisees are adequately protected against various risks associated with operating the business, such as property damage, employee injuries, liability claims, and professional errors. By requiring specific insurance coverage and naming itself as an additional insured, Ledgers aims to mitigate potential financial losses and protect its brand reputation. Prospective franchisees should carefully review these insurance requirements and factor the costs of obtaining and maintaining the necessary coverage into their financial projections.