What are the workers' compensation insurance requirements for a Management Recruiters franchise, and are there any exceptions?

According to Management Recruiters's 2024 Franchise Disclosure Document, franchisees are generally required to maintain workers' compensation insurance. The specific requirement is to have "WORKERS' COMPENSATION with the statutory minimum limits set by applicable Law." This means the level of coverage must meet the minimum requirements defined by the laws of the state where the franchise operates.

However, there is an exception to this rule. If the franchisee operates as a sole proprietorship and the laws of their state do not mandate workers' compensation coverage for sole proprietors, then they are not required to carry this insurance. This exception acknowledges that in some jurisdictions, business owners without employees are exempt from workers' compensation requirements.

In addition to workers' compensation, Management Recruiters franchisees must also carry employer's liability insurance in the amount of $500,000.00 or statutory minimum limits, whichever is greater. Franchisees should consult with an insurance professional to determine the specific requirements and coverage levels necessary for their Management Recruiters franchise, taking into account their business structure and the laws of their state.