What is the minimum amount of professional liability insurance for errors and omissions 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 professional liability insurance for errors and omissions in the amount of $1,000,000. This insurance coverage is intended to protect both the franchisee and Ledgers from potential financial losses resulting from errors or omissions in the professional services provided by the franchisee.
In addition to professional liability insurance, Ledgers also requires franchisees to obtain and maintain other types of insurance coverage, including "all risk" property insurance, workers' compensation insurance, comprehensive general liability insurance, business interruption insurance, and commercial automobile liability insurance. The specific minimum coverage amounts for these other insurance types are also detailed in the FDD, with some amounts potentially varying based on state law requirements.
It is important to note that all insurance policies must name Ledgers as an "additional insured" party. This requirement ensures that Ledgers is also protected under the franchisee's insurance policies. Franchisees are responsible for the costs associated with obtaining and maintaining all required insurance coverage. Prospective franchisees should factor these insurance costs into their overall financial planning when considering a Ledgers franchise.