3 Ways Franchisors Can Save on Insurance and Protect Franchisees' Bottom Lines
3 Ways Franchisors Can Save on Insurance and Protect Franchisees' Bottom Lines

EZ CERT president Doug Groves lays out the key steps franchisors should be taking to select the proper insurance policy for their franchisees’ needs—and budgets.

In the franchising industry, success is signaled by how well a franchise system follows the business model and processes outlined by the franchisor. Among the myriad things a franchisor must monitor that can potentially fall through the cracks: Insurance compliance. Insurance certificate tracking for each franchisee within a given brand’s franchise system is a tall task that requires a level of diligence and proactivity that many growing brands understandably don’t always have the bandwidth for.


Doug Groves established the franchise insurance compliance management company precisely to meet this need he’d identified in the industry and provide franchisors with a comprehensive solution to their insurance compliance needs. When it comes to selecting the proper insurance policy, Groves said, franchisors should be sure to follow the following guidelines to ensure they are investing in the best option available for their franchise systems.

Work With an Independent Insurance Agency To Ensure You’re Getting the Best Rates

There’s a lot of value in the peace of mind that comes from working with an independent agent, such as EZ CERT affiliate Program Insurance Group

While some companies are tied to specific insurance carriers like State Farm or Farmers, independent agencies have the ability to review policies and programs across a variety of platforms, giving them the ability to present franchisors with a broader range of more nuanced policy options to choose from. 

“In our work with our clients, we’re invested in finding the best possible coverage option to meet their needs, provider aside,” Groves said. “By not being tied to any specific carrier company, we’re able to deliver the most tailored policy possible without other partnerships or outside influences playing a role to the great benefit of each of our clients.”

Review Your Policies Annually To Reassess and Modify Where Necessary

Carving out the time to evaluate current policies and assess potential changes in coverage on an annual basis is strongly advised by Groves and EZ CERT. 

“At least once a year, franchisors should consult their insurance agent to comb through what coverage they have as well as inquire about what else is out there that their policy may not cover,” Groves said. “Doing so is the best way to make sure you’re staying abreast of emerging, potentially applicable insurance coverage options to allow for any necessary adjustments in a timely manner, providing even more value to your franchisees, as a result.”

Evaluating insurance coverage on a yearly basis also allows franchise brands to identify trends and potential areas of addition or adjustment and ultimately, remain confident in their coverage current coverage and protect franchisees’ bottom lines.

Work With an Industry Professional That Understands Your Brand's Specific Needs

“You need a specialized insurance agent the same way you need a well-versed franchise attorney to write your FDD,” Groves said. “It’s critical to work with someone who understands your specific industry and the rules and regulations that impact your bottom line.”

Franchising is a complicated, nuanced industry, so working with an insurance professional is of paramount importance to safeguard every corner of your business. Keep in mind, each state and market potentially come with their own guidelines that both local franchise owners and their insurance agents should be cognizant of based on the nitty-gritty details of a given brand’s specific model.

“Doing so will help you ensure you’re not opening yourself up to serious liability, or overinsuring, either," Groves concluded.

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