Why do I need franchisor insurance for my business?
Franchisors face a great many responsibilities in their business. As a business in its own right, a franchise brand will need to ensure that all potential liabilities, property, vehicles, stock, contents and other assets are covered through adequate insurance. But by the nature of franchising, you’re effectively allowing other businesses access to your brand, products and / or services. In doing so, a franchise company could face significant repetitional risk, too.
There simply isn’t an ‘off the shelf’ franchisor insurance policy out there. Because franchises are run across a diverse range of business sectors, they all face different challenges and risks. Real Insurance Brokers have a proven track record when it comes to arranging quality insurance cover for franchisor businesses. We would be happy to help you find the cover you need to suit your strategy.
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What is Franchisor Insurance?
Franchisor insurance is an umbrella term. Depending on the nature of the franchise, there are a range of covers that may need to be included to protect your business from a range of risks.
First and foremost, you’ll need the basic covers in place that any business might need to think about. Liability insurances, protection for premises, contents and any commercial vehicles can all be included. So to, where relevant, insurance for stock and goods in transit.
But because you’re in a situation where you have other businesses using your brand, product and / or services, you need to think about what might happen if one of your franchisees does something that could cause your business repetitional or financial damage. Worse, if they haven’t protected themselves adequately, it could impact on your management fees. For that reason, rather than leaving the franchisees to arrange their own cover, you should consider stipulating what cover they need to take out.
At Real Insurance we have extensive experience helping franchisors identifying the right cover for their franchisees. You can include an option of cover as part of your contract with them. We’re here to take the insurance headache away. Get in touch today.