What is the minimum liability coverage per occurrence for comprehensive general 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.
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 comprehensive general liability insurance with a minimum liability coverage of $1,000,000 per occurrence. This requirement could be higher if mandated by state law. Additionally, all insurance policies must name Ledgers as an "additional insured" party.
This insurance requirement is a standard practice in franchising, designed to protect both the franchisee and the franchisor from potential liabilities arising from the business's operations. The $1,000,000 minimum coverage ensures that Ledgers franchisees have sufficient financial resources to cover potential claims or lawsuits. The "additional insured" designation provides Ledgers with direct protection under the franchisee's policy.
Prospective Ledgers franchisees should factor the cost of this insurance coverage into their initial investment and ongoing operating expenses. They should also consult with an insurance professional to determine the appropriate level of coverage for their specific circumstances, taking into account any higher state-mandated requirements. Understanding and securing the required insurance is a critical step in establishing and maintaining a Ledgers franchise.