Does Ledgers require a higher minimum liability coverage for comprehensive general liability insurance if state law requires it?

According to Ledgers's 2025 Franchise Disclosure Document, franchisees must obtain and maintain insurance coverage as required by their state laws. Furthermore, Ledgers mandates insurance coverage that may exceed the minimums required by state law. Specifically, Ledgers requires comprehensive general liability insurance, including contractual indemnity, with a minimum liability coverage of $1,000,000 per occurrence. However, if a franchisee's state law requires a higher minimum, they must obtain the higher coverage level.

This means that a prospective Ledgers franchisee needs to be aware of the specific insurance requirements in their state and ensure they meet those minimums. They must also be prepared to potentially obtain higher coverage levels to satisfy Ledgers's requirements, even if their state's minimums are lower. This could increase the franchisee's operating costs, as higher insurance coverage typically translates to higher premiums.

In addition to comprehensive general liability insurance, Ledgers also specifies minimum coverage amounts for other types of insurance, such as worker's compensation, commercial automobile liability, and professional liability. Franchisees must name Ledgers as an "additional insured" party on all insurance policies. Therefore, it is crucial for prospective franchisees to carefully review the insurance requirements outlined in the Franchise Disclosure Document and consult with an insurance professional to ensure they can obtain the necessary coverage and understand the associated costs.