Franchise Shop Insurance
How wide-ranging is this line of business?
Regardless of which franchise you will be joining, the correct insurance is crucial. Unexpected happenings can potentially set franchise units off the correct path and send them spiralling along with their employees and owner alongside it. This guide to franchise insurance will be an invaluable tool to avoid outcomes like this as you begin to forge your franchise shop’s path.
When starting as a franchisee, there will be a lot on your plate that needs doing. A range of tasks such as getting your website ready, employing qualified staff and ensuring that your operations fall in line with the instructions of your franchisor.
However, there is to consider at no cost should you avoid looking at franchise insurance. Not getting the right insurance sorted out is likely to get you in trouble with the law as some parts of insurance are legally obliged compulsory, especially if you are employing staff. It is also financially irresponsible to not sort out your policies, putting aside the legal responsibility. That is likely to put the future of your business in grave danger. Here we are going to look at the necessary insurance policies for franchisees.
Types of Franchise Shop Insurance
Employers’ liability insurance
The most crucial of all these is employers’ liability insurance. That’s because this policy is compulsory by law in almost all countries, at least for businesses that employ any staff. It’ll come in especially handy should an employee past or present bring a claim against the franchise shop for suffering any illness or injury because of work. Although the business may take every possible precaution to ensure that things do not happen, it is impossible to avert all risks altogether and guarantee that no staff member becomes ill or injured.
It is not unheard of even in a court of law for people to be found guilty of causing illness and injuries even if they didn’t mean to and consequently pay compensation despite taking all feasible and necessary precautions.
Employers’ liability insurance ensures that any compensation you are ordered to pay out is covered and so any unfortunate event does not become a financially crippling crisis. They will also cover the sometimes substantial legal fees that can rack up our which not every small business can pay. This is why even if employers’ liability insurance weren’t legal, it would still be heavily recommended.
Employment practices liability insurance
Employment practices liability insurance sound very similar to employers’ liability insurance, but it does not cover the same ground. One of the main differences is that it is not a legal requirement for businesses with employees.
However, this doesn’t mean you should ignore it; this policy can still come in handy. This type of insurance protects the business should any employees file a lawsuit based on race or disability discrimination in their workplace. Other things that fall under employment practices liability insurance include wrongful contract terminations, harassment, and similar employment issues.
This type of insurance can be crucial from the start of your business should there be any hiccups with the interview and selection process. Even with good intentions, it is possible to find yourself in a situation where you’re accused of discrimination for choosing the wrong candidate to hire. It is not an admission of guilt. It is just one of those things that can happen to anyone and that you want to ensure you’re protected against.
Public liability insurance
If your franchise works with the public in any way, you’re also likely to want to look into public liability insurance. This will protect you from accusations and claims by members of the public who come into your store or your shop/offices and, for whatever reason, get hurt. Just as with employers’ liability insurance, it’s essential to try and take precautions to prevent illnesses or accidents that can happen to anyone at the end of the day.
It’s naive to think that you can stop this completely. Whilst it isn’t compulsory by law like employers’ liability insurance. However, it can still save you money, in the same way, preventing situations where you are expected to fork out unmanageable sums of money unexpectedly as well as funding the lawyers 2 negotiate compensation.
These are only some considerations you must make as a franchise shop owner. We have listed the main three here, but there are many other things to consider when finding the right policy for you and your franchise shop. The best route of action is to look at comparison website prices, find an insurer that can be flexible, and design a policy that’s right for you and your franchise store.
Find out more about the importance of insurance here.
Other useful links about Business Insurance:
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Hair Salon Insurance
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