What is the minimum liability coverage per occurrence required for the comprehensive general liability insurance that Ledgers franchisees must carry?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
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 maintain comprehensive general liability insurance. This insurance must include contractual indemnity with a minimum liability coverage of $1,000,000 per occurrence. However, Ledgers specifies that this amount may be higher if required by state law.
In practical terms, this means a prospective Ledgers franchisee needs to secure a general liability insurance policy that covers at least $1,000,000 for each incident. It is important to check state laws to ensure the coverage meets or exceeds the minimum requirements of both Ledgers and the relevant state.
Additionally, Ledgers requires that all insurance policies name them as an "additional insured" party. This protects Ledgers in the event of a claim against the franchisee. Franchisees should factor in the cost of this insurance, which may be higher than standard business liability insurance due to the additional insured requirement and the specific coverage amounts.