What is the minimum required coverage limit for workers' compensation and employer liability insurance that Ledgers franchisees must maintain?
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 secure and maintain workers' compensation insurance and employer liability coverage. The minimum coverage limit required by Ledgers is $100,000, but this amount may be higher if mandated by state law.
This requirement ensures that Ledgers franchisees are adequately protected against potential liabilities arising from employee injuries or illnesses sustained during their work. Franchisees must also name Ledgers as an "additional insured" party on all insurance policies, which provides Ledgers with an added layer of protection against potential claims.
In addition to workers' compensation and employer liability coverage, Ledgers franchisees must also maintain other insurance policies, including "all risk" property insurance, comprehensive general liability insurance ($1,000,000 per occurrence), business interruption insurance, commercial automobile liability insurance ($1,000,000), and professional liability insurance ($1,000,000). Franchisees should consult with an insurance professional to ensure they obtain the appropriate coverage to meet both Ledgers's requirements and any applicable state laws.