Does Ledgers require business interruption insurance?
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 business interruption insurance. This requirement is part of a broader set of insurance obligations Ledgers imposes, which may exceed the minimum insurance coverage required by state laws. All insurance policies must name Ledgers as an additional insured party.
Specifically, Ledgers's insurance specifications include "all risk" property insurance coverage for the assets of the franchised business, workers' compensation and employer liability coverage with a minimum limit of $100,000 (or higher if required by state law), comprehensive general liability insurance with a minimum liability coverage of $1,000,000 per occurrence (or higher if required by state law), commercial automobile liability insurance of at least $1,000,000 (or higher if required by state law), and professional liability insurance for errors and omissions in the amount of $1,000,000.
For a prospective Ledgers franchisee, this means they will need to budget for and secure all these insurance types and coverage levels to comply with the franchise agreement. The franchisee should consult with an insurance broker to determine the costs of obtaining the required coverage in their specific location, considering that some minimums may vary based on state law. Failing to maintain the required insurance could result in a breach of the franchise agreement and potential penalties.