Does Ledgers require a higher minimum amount of commercial automobile liability insurance if my state law requires it?
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' 2025 Franchise Disclosure Document, franchisees must obtain and maintain insurance coverage as required by their state laws. However, Ledgers also mandates specific insurance coverage that may exceed the minimums required by state law. This means a prospective Ledgers franchisee needs to comply with both their state's requirements and Ledgers' requirements, whichever is higher.
Specifically, Ledgers requires commercial automobile liability insurance of at least $1,000,000, but this minimum increases if the franchisee's state law mandates a higher amount. This ensures that Ledgers franchisees have adequate coverage to protect against potential liabilities while operating their business.
In addition to commercial automobile liability insurance, Ledgers also specifies minimum coverage amounts for other types of insurance, such as worker's compensation, comprehensive general liability, and professional liability. Franchisees must also name Ledgers as an "additional insured" party on all insurance policies. Therefore, it is important for prospective franchisees to carefully review the insurance requirements outlined in the FDD and consult with an insurance professional to ensure they obtain the necessary coverage to meet both state and Ledgers' requirements.