The biggest reason behind the widespread popularity of franchise businesses is that fact that it offers optimum security to the franchise business owner. New franchises are backed by strong businesses that usually hold years of experience, and they provide full-term support to their franchises from all aspects.
Even when it comes to insurance, franchise owners can take professional, experience-based advice from their franchisors about what insurance plans that should opt.
However, if franchise business owners are looking for additional advice, the following 8 types of business issuance are essential for every franchise:
Public Liability Insurance
If you own food franchises, coffee franchises or any other kind of food franchises or any franchises where you expect customer visits on a regular; Public Liability Insurance is vital for your business. It will cover any accidental injuries or property damage that might be caused by your clients.
Workers Safety Insurance
Employees/workers should always be your top priority. Public Liability Insurance might not cover your employees’ insurance; therefore, it will be vital for you to get Workers’ Safety or Workers’ Compensation Insurance. Medical treatment, death benefits, disability, accidental injury treatment – all of these are covered in Workers Safety Insurance.
Employment Practices Insurance
Protecting employees is essential for every franchisee; however, protecting the business from false practices of its employees is also vital. Employment Practice Insurance protects the franchise from any lawsuit or case that any employee might file against the franchise business. Types of harassment claims or wrongful dismissal may also be covered by this insurance.
Product Liability Insurance
Even though you will not be developing the products; even if you own home based franchises, not even a single cup of coffee would be prepared according to your recipe at your coffee franchises; however, Product Liability Insurance will protect you if any customer claimed any damages caused by your franchise’s products.
This type of insurance also protects from inventory damage, as it will prevent you from having closed doors if your inventory is running low due to damage, which is essential if your daily product sales are entirely dependent on your inventory.
If you own a property that is being used for business purposes, Property Insurance is essential for you. It can be a store, restaurant or any other business property; the Property Damage Insurance will cover accidental damage to furniture, equipment, signage, and inventory.
It also covers damage caused due to fire, storm or theft. In Standard Property Damage Insurance, floods and earthquakes are not covered. So, before signing the insurance policy reconfirm if you want protection in case of floods, earthquakes or any other natural disasters.
Vehicle insurance is essential for every franchise that uses any vehicle, may it be a car, truck or motorbike, and all the vehicles must be insured to protect them from any kind of accidental damage.
However, Vehicle Insurance usually only offers protection to the franchise’s vehicles that are used for business supposes only. Any personal vehicle used for business purpose is usually not covered by business vehicle/auto insurance.
Home-Based Business Insurance
Home based Franchises owners have to get separate Home-Based Business Insurance because of no matter if they are running their business from home, they also need damage and accidental insurance. The home owner’s insurance usually does not allow any business-related damage coverage.
So, if the home-based franchisees are planning to save extra pounds by working from home; they will not be able to save any pennies when it comes to insurance.
Business Interruption Insurance
This type of insurance is essential for low cost franchises or small franchise owners who cannot afford for their business to be shut down for an x amount of time due to disaster or any destructive accident. The Business Interruption Insurance protects the franchisees from complete loss and compensates a portion of the loss.
These are a few basic insurance types; however, to make sure that you are fully covered, you should seek further guidance your franchisor and try to get all the insurances that your franchisor has because they would be planned according to the same business model that you will also follow.
However, according to the need of the region of your franchise, there might require a few additional insurance policies.