What is the minimum amount of professional liability insurance for errors and omissions 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 professional liability insurance for errors and omissions. The minimum required coverage amount is $1,000,000.
In addition to professional liability insurance, Ledgers franchisees are also required to maintain other types of insurance coverage, including "all risk" property insurance, workers' compensation, comprehensive general liability insurance, business interruption insurance, and commercial automobile liability insurance. The specific minimums for these other policies vary, but some also have a $1,000,000 minimum.
It is important to note that these are minimum insurance requirements set by Ledgers. Franchisees must also comply with any higher insurance coverage requirements mandated by their state laws. Furthermore, all insurance policies must name Ledgers as an "additional insured" party, which protects Ledgers in case of claims against the franchisee.
Prospective franchisees should factor the cost of these insurance policies into their initial investment and ongoing operating expenses. Insurance costs can vary depending on location, coverage limits, and other factors. It would be prudent to consult with an insurance broker to obtain quotes and ensure adequate coverage is in place.