What is the minimum amount of commercial automobile liability insurance that Ledgers requires?
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 commercial automobile liability insurance of at least $1,000,000. This requirement is part of the insurance coverage Ledgers mandates, which franchisees must secure at their own expense. The specific amount could be higher if required by state law, indicating that Ledgers's minimum is a baseline, and franchisees need to comply with the stricter of the two requirements (Ledgers's or the state's).
In addition to commercial automobile liability insurance, Ledgers also requires franchisees to carry other types of insurance, including "all risk" property insurance, workers' compensation, comprehensive general liability insurance, business interruption insurance, and professional liability insurance. All insurance policies must name Ledgers as an "additional insured" party, which protects Ledgers from potential liabilities related to the franchisee's business operations.
The insurance requirements outlined by Ledgers are typical in the franchise industry. Franchisors often set minimum insurance coverage levels to protect their brand and business interests. Prospective Ledgers franchisees should factor in the cost of these insurance policies when evaluating the overall investment and operating expenses of the franchise. It is also important to consult with an insurance professional to ensure that the coverage obtained meets both Ledgers's requirements and any applicable state laws.