1851

As a supplier to the franchise industry in the realm of insurance, compliance tracking and management solution&nbsp;<a href="https://www.certmgmt.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=3-ways-franchising-is-poised-to-change-in-2020-from-an-insurance-suppliers-perspective-2712495" target="_blank" rel="nofollow">EZ CERT</a> has a unique vantage point from which to assess industry trends. Team members Andrea Denton and Doug Groves underlined what is on deck in the world of franchise insurance for 2020 that has the potential to shift the way the industry operates as a whole.Automobile insurance costs will continue to rise.Whether it be through rates, commercial or personal, fewer carriers competing, automobile insurance is an expensive aspect of the industry right now, and the outlook is only trending towards higher premiums and fewer players in the market.&nbsp;“Any franchise business that owns commercial vehicles and insures their fleet under auto insurance will feel an impact in 2020,” Groves said. “It’s getting harder to write auto insurance policies and the insurance itself is getting extremely expensive. Franchisees should expect premiums to go up and for claims to become costlier.”Brands will become increasingly more liable in relation to third-party delivery.“Food delivery via a third party is not going away,” Denton said. “People are finding creative ways to take their business beyond the four walls. A lot of traditional restaurant businesses and franchises alike use third-party, and carriers look at the use of third-party delivery differently. Sometimes, carriers look at it favorably due to perceived less risk, while other carriers don’t care who is doing the delivering and charge the same rate across the board. Brands need to look at their policies and read their contracts to best understand what makes the most sense for them as this becomes more and more the norm.”With&nbsp;<a href="https://1851franchise.com/ezcertmgmt">EZ CERT</a>, restaurant franchises can ensure that they are covered under their third-party delivery partner’s policy. Checking in on whether a given partner’s insurance extends back to you as the source of the delivery order is essential to making sure your business is protected from all angles at the unit-level.&nbsp;EPLI coverage is rapidly changing—and brands need to proactively rely on company culture and policies with the coverage as a safety net.&nbsp;“The price of any and all coverage related to workplace misconduct and sexual harassment is skyrocketing,” Groves said, noting that certain brands are more susceptible to claims than others, such as massage and wellness brands and any and all children’s services concepts. “Toxic organizational cultures are being revealed because people won’t take it anymore.”<a href="https://1851franchise.com/ezcertmgmt/epli-coverage-what-it-entails-and-why-you-need-it-2711870#industry">EPLI coverage</a>, Employment Practices Liability Insurance, relates to claims of this nature, and in 2020, premiums are rising due to the financial ramifications harassment and discrimination claims bring about, in addition to their social and cultural ramifications.As with any claim, the specific facts and circumstances surrounding the matter will be critical in determining whether EPLI coverage is ultimately triggered. That being said, Groves warned that while coverage is indeed available to protect franchisors and franchisees in the event these claims arise, it’s becoming costly because insurance companies are treating said claims differently than they were in the past. As a result, it compels franchisors to look inward and establish the necessary systems organizationally to prevent these situations in the first place. The obligation, Groves said, ultimately falls on companies to have the proper safeguards and culture to limit these types of claims as well as purchase EPLI coverage as part of their overall risk management strategy.

3 Ways Franchising is Poised to Change in 2020 From an Insurance Supplier’s Perspective

1851 Franchise

EZ CERT’s Andrea Denton and Doug Groves share that which is set to impact franchising from an insurance standpoint in the year ahead.

This brand page has been paid for by 1851. Content within this page that is paid will showcase a Sponsored icon. This means the brand has engaged 1851 FRANCHISE to write the content. Content without the Sponsored Icon is aggregated media placements the brand earned. Questions can be sent to editorial@1851franchise.com

3-ways-franchising-is-poised-to-change-in-2020-from-an-insurance-suppliers-perspective

Lawn Doctor

Happinest-Lawn-Doctor-Franchisee-Ralph-Valle-Profile-Jacksonville-FL-June-2025

From Near-Quit to 7 Figures: Success With Lawn Doctor in Jacksonville, Florida

lawn-doctor-franchise-success-jacksonville

Atomic Wings

Atomic Wings Debuts in Metro East With Fairview Heights Grand Opening

atomic-wings-debuts-in-metro-east-with-fairview-heights-grand-opening

Pet Wants

Pet Wants Shares Expert Tips on Cleaning Pet Gear Safely in the Dishwasher

pet-wants-shares-expert-tips-on-cleaning-pet-gear-safely-in-the-dishwasher

Griswold

Griswold in Andover, Minnesota, Connects Students and Seniors Through Pen Pal Program

griswold-in-andover-minnesota-connects-students-and-seniors-through-pen-pal-program

HomeTeam Inspection Service

Photo of HomeTeam Inspection Service franchisee Max Moarefdoust

Corporate Employee Turned Owner Illustrates the Power of the HomeTeam Model

max-moarefdoust-hometeam-success

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Development Website Builder

Franchise Resources

What ALEC-Laffer's Report Means for Franchising

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

1851 Login

GROWTH CLUB LOGIN

facebook

instagram

twitter

linkedin

youtube

Chick-fil-A Tops Customer Satisfaction Rankings for 11th Year as Challenger Brands Gain Ground

chick-fil-a-tops-customer-satisfaction-rankings-for-11th-year-as-challenger-brands-gain-ground

Technomic Releases Annual Ranking of the Top 15 Fast-Food Chains in the U.S.

technomic-releases-annual-ranking-of-the-top-15-fast-food-chains-in-the-us

Rising Jobless Claims Could Signal Challenges — and Opportunities — for Franchising

rising-jobless-claims-affect-franchising

Hardee’s Lawsuit Highlights the Risk of Going Off-Model in Franchising

hardees-franchise-lawsuit-paradigm-investment-group

Hooters Leans Into Franchising With Closure of 30 Company-Owned Stores - Agg - 1851 Franchise

Hooters Leans Into Franchising With Closure of 30 Company-Owned Stores

hooters-franchise-model-company-owned-closures

The Ultimate Guide to Selling Franchises: How To Create a Strong Incentive

how-to-build-strong-incentives-to-attract-prospective-franchisees

How Vishal Juneja Turned a Family Tradition Into a Paris Baguette Franchise

How Vishal Juneja Turned a Family Tradition Into a Paris Baguette Franchise Built on Heart and Community

3 Ways Franchising is Poised to Change in 2020 From an Insurance Supplier’s Perspective

MORE STORIES LIKE THIS