Franchise Insurance in New Hampshire

What is Franchise Insurance?

The franchise business model is well-established and can be highly profitable, but it’s not without potential risks. Both franchisors and franchisees in New Hampshire need to consider how they can mitigate their risk exposure, and that’s something franchise insurance can help do. The right insurance can protect either party from a variety of covered perils.

Though there is no specific franchise policy, franchises can obtain a specialized form of commercial insurance that’s designed specifically for franchise situations. Regardless of whether it’s purchased by a franchisor or franchisee, policies usually come with multiple coverages that work together to provide a range of protections.

What Businesses in New Hampshire Need a Franchise Policy?

Most franchise businesses in New Hampshire ought to have a franchise policy in place, and this includes both franchisors and franchisees. Merely a few different types of franchise businesses that might need a policy include:

• Restaurant franchises

• Hotel franchises

• Investment advisor franchises

• Real estate franchises

• Management franchises

• Retail franchises

While both franchisors and franchisees typically need a franchise policy in these types of business dealings, they normally don’t get the same coverages on a policy. Franchisor policies are intended for franchisors, and franchisees generally get franchisee insurance policies. The two types of policies frequently differ in the coverages they provide.

Businesses that are unsure whether this is the right type of insurance for them should speak with an insurance agent who specializes in franchisor and franchisee insurance. A specialized agent will be able to make an informed policy recommendation based on a business’ particular situation and needs.

What Coverages Do Franchisor Insurance Policies Provide?

The exact coverages that franchisor policies make available can vary by insurance company, but the following coverages are often available:

• Franchisor Errors and Omissions Coverage, which may protect franchisors from lawsuits related to errors in work

• Management Liability Coverage, which may protect board members and executives from certain lawsuits

• Employment Practices Liability Coverage, which may protect franchisors from lawsuits related to employment issues

Errors and omissions coverage is commonly called E&O coverage. Management liability coverage is also known as directors and officers (D&O) coverage.

What Coverages Do Franchisee Insurance Policies Provide?

The coverages included in franchisee insurance policies also can vary. There still are many coverages that these policies commonly offer, though. Some of the more widely available protections may include:

• General Liability Coverage, which might cover common accidents occurring on a franchisee’s property

• Commercial Property Coverage, which might cover franchisee-owned buildings and equipment

• Commercial Auto Coverage, which might cover franchisee-owned vehicles or rented vehicles used for work

• Commercial Umbrella Coverage, which might cover major liability lawsuits with supplemental protection 

• Professional Liability Coverage, which might cover lawsuits related to errors franchisees make in their work

• Product Liability Coverage, which might cover injuries or damage caused by products a franchisee sells

• Cyber Liability Coverage, which might cover sustained losses in revenue that follow disasters

In addition to these, policies frequently also offer employment practices liability coverage and other protections.

What is Hired and Non-Owned Auto Coverage?

When vehicles are owned by a franchisee, a separate commercial auto policy is needed.  

If vehicles aren’t owned by the business but are still used for work-related driving, coverage can usually be obtained through a hired and non-owned auto policy. This normally provides liability coverage for times when rented or employee-owned vehicles are driven for work. Hired and non-owned coverage is typically available by itself or within franchisee policies.

Pizza franchises that have delivery drivers and real estate franchises that have agents use their own vehicles are just a couple franchises that might want hired and non-owned coverage.

How Can Businesses in New Hampshire Get Franchise Insurance?

For help insuring a franchise business that operates in New Hampshire, contact the independent insurance agents of HPM Insurance. Our agents can help you get quotes for both franchisor and franchisee policies, and they have the expertise necessary to make sure your business ends up with the right franchise insurance policy.