What specific coverages must be included in the Cyber/Network Security and Privacy Liability Insurance for a Remax franchise?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
/MAX Holdings, Inc., REMAX, LLC, and RE/MAX Regional receive prior written notice of termination, expiration, cancellation or modification of such policy.
-
- Workers compensation insurance in amounts prescribed by law. Employer's liability with a limit of $1,000,000 each accident, each occupational disease, and occupational disease aggregate.
-
- Cyber/Network Security and Privacy Liability Insurance (which must include coverage for phishing, social engineering, extortion, threats and ransom payments, incident and public relations response costs, business interruption loss, and similar claims) in an amount of not less than $1,000,000 combined single limit to cover civil, regulatory and statutory damages, contractual damage, as well as data breach management exposure, and any loss of income or extra expense as a result of actual or alleged breach, violation or infringement of right to privacy, consumer data protection law, confidentiality, or other legal protection for personal information, as well as confidential information of REMAX, LLC and other Related Pa
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, a franchisee must obtain Cyber/Network Security and Privacy Liability Insurance. This insurance must include coverage for specific risks such as phishing, social engineering, extortion, threats and ransom payments, incident and public relations response costs, and business interruption loss. It should also cover similar claims related to these events.
The required insurance coverage must have a combined single limit of not less than $1,000,000. This limit is intended to cover civil, regulatory, and statutory damages, contractual damage, as well as data breach management exposure. It also extends to any loss of income or extra expenses resulting from actual or alleged breaches, violations, or infringements of privacy rights, consumer data protection laws, confidentiality, or other legal protections for personal information. This coverage also applies to the confidential information of REMAX, LLC, its related parties, and their respective officers, directors, and employees.
However, the FDD states that if a franchisee is unable to obtain $1,000,000 in coverage due to the size of their office, they can obtain coverage that is appropriate for the size of their office. In this case, the combined single limit should not be less than $500,000. This flexibility acknowledges that smaller offices may have different risk profiles and insurance needs compared to larger ones.