Insurance Needs for Franchisees
Life, health, and commercial insurance: What you need as a franchise owner.
Growing your business with a franchise organization strengthens your partnership with the franchise owner. But how do you strengthen your own business? Franchise insurance is the best way to strengthen and protect your franchise from unforeseeable events!
Why Insurance is Important as a Franchisee.
As a franchisee, you are a business owner, and that means that you are responsible for maintaining the success of that business. Franchise ownership offers amazing advantages to help your success rates, from the built-in customer base to instant brand recognition. However, owning any business comes with unimagined risks. You need to stay protected from those risks, and the best way to protect your business is by investing in business insurance.
Business insurance will mitigate the impact of unexpected circumstances (or emergencies) and keep your business running smoothly without interruption.
Buying into a franchise is a tremendous step that requires time, energy, and finances. The groundwork (money) to start a new business can be protected through the right insurance coverage. Is your investment covered?
Want to make a return on your investment? Consider Budget Business Insurance
As a business owner, it is very important to allocate a budget for business insurance. This is not only a suggestion but often a requirement for any business owner. This could be due to government regulations or your agreement with your franchisor. According to Smart Compliance, make sure to check the Franchise Disclosure Document (FDD) for requirements and regulations.
The only way to secure your investment (and see a return) is to make sure you are protected against loss. Franchise insurance will protect your business from unexpected events that could potentially jeopardize the operation and success of your business. There are several ways to protect your business today.
What Kind of Business Insurance Do I Need?
There are many different types of business insurance! The type of insurance that you need for your business depends on the type of business that you own. It is best to consult with your franchisor, as a guide to the type of insurance that you would need. The franchisor will typically understand the specific insurance needs and have familiarity with unknown risks. Also, analyzing your business plan will offer insight into the insurance coverage you need.
What Type of Business Do You Own?
It is crucial to examine every aspect of your business for risk management. Franchise Direct is a great source to examine your business and explore insurance needs.
Ask Yourself These Questions:
Are you welcoming customers into your business? This would constitute a need for general or public liability. You must be protected against accidents that occur in your franchise.
Do you have employees? That means that you must have insurance to protect your staff while they are working and possibly offer personal insurance. Personal insurance is outlined as life, health, dental, and vision. To maintain workers, you must have worker’s compensation insurance and employment practices liability insurance.
Are you running a business with inventory? Then you will need to invest in product liability. Is this inventory edible? You should invest in product contamination insurance.
Is your business a brick & mortar storefront? Property damage is an insurance type that would cover your property against flood, fire, smoke, vandalism, and many more.
Does your business have delivery vehicles or use vehicles? Auto insurance (commercial) policies can be written to shape your specific business needs.
If your business is affected by a natural disaster, how will you recover lost revenue? It’s important to have insurance that protects against these types of losses.
Now Where To Buy Business Insurance?
There are many insurance companies that write policies for franchise owners. For instance, The Insurance Store offers a wide variety of insurance packages to fit specific needs. The Insurance Store also offers insight into the five must-have insurance policies for a franchise business. These types of insurance coverages are outlined as general liability, equipment breakdown, loss of business income, commercial auto liability, and excess liability coverage. These five insurance policies are very important but to completely protect your business with a blanket of protection, make sure to insist on an umbrella policy. This addition will cover unforeseen expenses to your business and offer a larger amount of coverage.
How Much Does Business Insurance Cost?
As you have read, there isn’t a standard (one size fits all) insurance coverage for businesses. The amount of coverage that you need will affect the cost of your insurance policy. Luckily, popular personal insurance companies also have business (commercial) insurance policies. A great way to save money on your business insurance is to bundle your personal and commercial insurance through the same company.
Investopedia lists these seven small business insurance companies as the top companies of 2021. The best overall is State Farm then Hiscox, Nationwide, The Hartford, Travelers, Liberty Mutual, and Progressive. State Farm is ranked number one due to its nationwide coverage. This is an important factor in cutting costs and bundling insurance if you run multiple franchises across the country.
Business Insurance is a Must-Have For a Franchisee.
Becoming a Franchisee is a rewarding investment, that can easily be protected with business insurance. Get started by examining your business model today!
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