Running a business franchise can present unique challenges compared to other business entities. However, there’s one significant similarity: the need for the appropriate level of insurance coverage. Our commercial insurance specialists listen to the needs of franchisors to help them choose the right amount of business franchise insurance.
Types of Business Franchise Insurance Coverage
Professional Liability Coverage
A significant mistake could result in your company being shut down if you do not havet the right protections in place. Also known as “errors and omissions” coverage, professional liability insurance coverage provides protection for policyholders in the event of malpractice, mismanagement, and even workplace-related claims in some cases.
Workers Compensation Coverage
Franchises depend on their employees. If employees get injured on the job or become ill due to work, workers’ compensation provides a degree of loss control from liability and provides medical and financial relief for the employee while they recover.
Product Liability Coverage
Business franchises that sell products should carry product liability coverage in the event that one of their products injures a customer or somehow causes them to become sick. Without this type of protection in place, franchisors leave themselves vulnerable to lawsuits that could result in bankruptcy.
General Liability Coverage
Like many businesses that rely on customers to drive their bottom line, general liability coverage is necessary for franchise owners. If a customer gets injured while on one of their properties, they’ll need protections in place to prevent paying expensive out-of-pocket legal fees and settlement costs.
Whether the company owns or rents commercial property, real estate property insurance coverage protects against damage to the building and assets like furniture, office equipment, and fixtures.
Business Auto Insurance
Benefits of Commercial Auto Insurance When it comes to running a business, vehicles—whether they’re leased, rented or owned—are crucial for a variety of tasks. Whether transporting materials and tools to worksites, hauling goods for deliveries or driving to meet clients—companies of all kinds rely on safe and functioning vehicles to serve customers and generate profit. It is important to protect your drivers and vehicles through proper insurance coverage.
Should Business Franchises Purchase a Commercial Umbrella Policy?
General liability and professional liability coverage have maximum limits. Therefore, a commercial umbrella policy provides extended protection against lawsuits and claims that exceed those maximum limits. Kastendike Insurance Group’s knowledgeable insurance agents will discuss whether or not adding a commercial umbrella policy is right for your company.
Does Your Business Franchise Need Insurance Coverage?
In partnership with Maury, Donnelly & Parr, The Kastendike Insurance Group takes the time to listen to business franchise owners about their insurance needs. For a no-obligation quote, call 443-501-9388.