What is the minimum amount of professional liability insurance for errors and omissions required for a Ledgers franchise?
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 professional liability insurance for errors and omissions in the amount of $1,000,000.
In addition to professional liability insurance, Ledgers franchisees are required to obtain and maintain other insurance coverages. These include "all risk" property insurance, workers' compensation insurance 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 commercial automobile liability insurance of at least $1,000,000 (or higher if required by state law).
Ledgers requires that all insurance policies name them as an "additional insured" party. Furthermore, the insurance coverage Ledgers requires may exceed the minimum insurance coverage required by state laws, and franchisees must adhere to Ledgers's specifications. Franchisees are responsible for covering the costs of all required insurance.