8 Exposures Franchisors Should Have Covered by Their Insurance Provider

When you start your own business, it’s inevitable that you will need insurance, but how do you know who will be the best partner and provide the services you need in order to make sure you’re fully covered? That’s where companies like EZ CERT come in. EZ CERT helps to ensure brands on are in full compliance with their FDD. But, in order for any insurance provider to prescribe the best coverage, you need to be sure you are being fully transparent about any exposures your business may face.

Doug Groves, president of EZ CERT, broke down the eight key topics you should answer to better identify the type of insurance your franchise may need.

1. Do you own or lease your building? You will need Property Insurance.
2. Do the contents of your building move? You will need Property Insurance.
3. Detail all of the ways your income can be lost. Be sure you’re covered with Business Income Insurance.
4. Detail what your business does that can injure someone or cause them financial loss. Be sure you’re covered with Liability Insurance.
5. Who performs the day-to-day work, employees or subcontractors? Are they insured? You will need Workers Compensation to make sure you’re fully covered.
6. Do you use autos, do employees use autos? Does your company deliver people or things? You should be sure to have Auto Insurance.
7. Can employees be abused in some way? Age, sexual, etc.? Be sure to have Employment Practices Liability Insurance.
8. Do you require an umbrella amount? Don’t forget to have Umbrella Insurance for any additional coverage needs.

These topics can help insurance providers pinpoint key exposures business owners face and allow them to dive deeper into the exact coverage they will need so they don’t find out when it’s too late.

Groves shared, “Each one of these questions launches into another conversation and allows the customer tell us what they are responsible for. It’s all about communication with the customer. As a business owner, you have to make sure that someone is watching over you. Telling your insurance provider your exposures will help you support your business for the long haul.”

It’s extremely important to share everything with your insurance provider and to be open and honest. Groves always emphasizes the importance of these conversations because without them a client can find themselves in a bad situation. Saving money in the short-term can be bad in the long term.

“We cannot insure everything, a business failing due to of poor management cannot be insured. However, storms, fires, accidents, lawsuits, these kinds of things can be insured if we are knowledgeable of their existence.”

Having the right insurance can save your business during a difficult time. It’s invaluable to think of your insurance partner as an extended member of your team that is there to help and support you. The right partner should provide ongoing support and give you the peace of mind that your company is doing what’s right for both you and your franchisees.