Can Ledgers require insurance coverage that exceeds the minimum required by state law?
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, Ledgers franchisees must obtain and maintain insurance coverage as required by state laws. However, Ledgers can also require franchisees to obtain and maintain insurance coverage that exceeds the minimum requirements of state laws. All insurance policies must name Ledgers as an "additional insured" party.
The FDD specifies Ledgers' current insurance requirements. These include "all risk" property insurance coverage for assets of the Franchised Business; workers' compensation insurance and employer liability coverage with a minimum limit of $100,000 (or higher if state law requires); comprehensive general liability insurance which includes contractual indemnity with a minimum liability coverage of $1,000,000 per occurrence (or higher if state law requires); business interruption insurance; commercial automobile liability insurance of at least $1,000,000 (or higher if state law requires); and professional liability insurance for errors and omissions in the amount of $1,000,000.
This means that a prospective Ledgers franchisee needs to factor in potentially higher insurance costs than the state-mandated minimums when assessing the financial viability of the franchise. It is important to carefully review the insurance specifications outlined in the Franchise Disclosure Document and consult with an insurance professional to understand the full scope of coverage required by Ledgers.