Does Ledgers require me to name Ledgers as an 'additional insured' party on all insurance policies?
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 are required to obtain and maintain specific insurance coverage, and all insurance policies must name Ledgers as an 'additional insured' party. This requirement ensures that Ledgers is protected against potential liabilities arising from the franchisee's business operations.
The insurance specifications mandate several types of coverage. These include 'all risk' property insurance 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), business interruption insurance, 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 incurring the cost of these insurance policies and ensuring that they meet the specified coverage levels. The franchisee must also verify whether their state laws require higher minimum coverage limits than those specified by Ledgers. Failing to maintain the required insurance coverage and naming Ledgers as an additional insured could result in a breach of the franchise agreement, potentially leading to penalties or termination of the franchise.
This requirement is fairly standard in the franchise industry, as franchisors often seek to protect their brand and business interests from potential liabilities arising from franchisee operations. Franchisees should factor in these insurance costs when evaluating the overall investment and operating expenses of a Ledgers franchise.