What is the minimum amount of commercial automobile liability insurance that a Ledgers franchisee is required to obtain?
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 must obtain and maintain commercial automobile liability insurance of at least $1,000,000. However, this amount may be higher if required by state law.
In addition to commercial automobile liability insurance, Ledgers requires franchisees to obtain and maintain several other types of insurance coverage. These include "all risk" property insurance, 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, and professional liability insurance for errors and omissions in the amount of $1,000,000.
Ledgers also requires that all insurance policies name them as an "additional insured" party. This is a common practice in franchising, as it protects the franchisor from liability related to the franchisee's business operations. Franchisees should carefully review the insurance requirements outlined in the Franchise Disclosure Document and consult with an insurance professional to ensure they obtain adequate coverage.