Besides securing comprehensive general liability insurance for the Remax office, what are the alternative options for ensuring Sales Associates are covered?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
ent, and any extension or renewal thereof, maintain in force at your sole expense such insurance coverage that we require from time to time and to meet the insurance related obligations in this Agreement (your obligation to obtain and maintain the insurance described below shall not be limited in any way by reason of any insurance we or our Related Parties maintain, nor will your performance of such obligations relieve you of any obligations under Section 5 of this Agreement). This insurance shall include, at a minimum, the following coverage:
a. Comprehensive General Liability.
Comprehensive general liability insurance insuring against claims for bodily and personal injury, and death and property damage, caused by or occurring in conjunction with the operation of the Office or otherwise in conjunction with the conduct of business by you pursuant to the Franchise and this Agreement, in the face amount of not less than $2,000,000 per occurrence or claim and annual aggregate. Coverage must also include broad form contractual liability, broad form property damage, personal and advertising injury, premises liability and products liability. You must secure endorsements covering each of your Sales Associates under such comprehensive general liability insurance policy or, in the alternative, you must ensure that each Sales Associate secures comprehensive general liability insurance on his or her own behalf in the face amount of not less than $2,000,000 per occurrence and annual aggregate.
b. Errors and Omissions.
Real estate errors and omissions professional liabi
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, if a franchisee chooses not to secure endorsements for their Sales Associates under the comprehensive general liability insurance policy for the office, the alternative is to ensure that each Sales Associate secures their own comprehensive general liability insurance. This individual coverage must be in the amount of not less than $2,000,000 per occurrence and annual aggregate.
Similarly, for errors and omissions insurance, Remax franchisees have the option to either secure endorsements covering each of their Sales Associates under the office's errors and omissions policy, or ensure that each Sales Associate obtains their own real estate errors and omissions professional liability insurance. The individual coverage must be in the face amount of not less than $1,000,000 per claim and annual aggregate.
These alternative options provide flexibility for Remax franchisees in managing insurance coverage for their Sales Associates. Franchisees can choose the method that best suits their business structure and relationship with their associates, while ensuring that all Sales Associates meet the minimum required coverage levels. It is important for prospective franchisees to carefully consider the costs and administrative burdens associated with each option when making their decision.