What is the minimum combined single limit for automobile liability insurance covering vehicles used for Remax franchise business?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
be required to secure endorsements covering each of your Sales Associates under such errors and omissions policy or, in the alternative, you will be required to ensure that each Sales Associate secures real estate errors and omissions professional liability insurance in the face amount of not less than $2,000,000 per claim and annual aggregate.
- Automobile liability insurance covering each vehicle titled or leased in your name or the name
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 47–53)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, franchisees must maintain automobile liability insurance for all vehicles used for business purposes. The minimum combined single limit for bodily injury and property damage is $1,000,000. This coverage applies to vehicles titled or leased in the franchisee's name or the franchise's name, or by any of its owners. The policy must include coverage for any auto or owned, hired, and non-owned automobiles.
In addition to the franchisee's coverage, Remax requires that each Sales Associate in the office also obtain automobile liability insurance for vehicles used for business. Franchisees must use their best efforts to ensure that these policies name RE/MAX Holdings, Inc., REMAX, LLC, and RE/MAX Regional as additional insureds and provide them with primary and noncontributory coverage. These policies should also include a waiver of subrogation rights and provide the same amount of coverage as the franchisee's policy.
Remax also stipulates that all insurance policies must include a waiver of subrogation rights against RE/MAX Holdings, Inc., REMAX, LLC, and RE/MAX Regional. Furthermore, these entities must receive 30 days' prior written notice of any termination, expiration, cancellation, or modification of the policy. The insurance company must have an A.M. Best's rating of at least A- and a financial size category of at least VIII. Franchisees must provide RE/MAX Regional with evidence of the insurance coverage at least 30 days before the policy's effective date and annually thereafter.
These insurance requirements are designed to protect both the franchisee and Remax from potential liabilities arising from business operations. Franchisees should consult with an insurance professional to ensure they obtain adequate coverage and comply with all requirements outlined in the Franchise Agreement. Failure to maintain the required insurance coverage could result in Remax obtaining coverage on the franchisee's behalf, with the franchisee responsible for reimbursing all costs and premiums.