What is the minimum coverage for commercial automobile liability insurance required by Ledgers?
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 maintain commercial automobile liability insurance with a minimum coverage of $1,000,000, or higher if required by state law. This insurance requirement is part of a broader set of insurance obligations Ledgers imposes on its franchisees.
In addition to commercial automobile liability insurance, Ledgers franchisees must also secure and maintain other types of insurance, including "all risk" property insurance, workers' compensation and employer liability coverage, comprehensive general liability insurance, business interruption insurance, and professional liability insurance. All insurance policies must name Ledgers as an additional insured party, ensuring that Ledgers is protected in case of any claims or liabilities arising from the franchisee's operations.
The insurance requirements are intended to protect both the franchisee and Ledgers from potential financial losses due to accidents, injuries, or other unforeseen events. Franchisees should factor in the cost of these insurance policies when evaluating the overall investment required to start and operate a Ledgers franchise. It is also important for prospective franchisees to consult with an insurance professional to determine the appropriate level of coverage for their specific circumstances and location, as state laws may mandate higher coverage limits than the minimums specified by Ledgers.