In this episode, Doug Groves and I talk about insurance, specifically, what types of business insurance are out there, the importance of finding a rep that knows your industry, and what role does insurance play in the relationship between franchisor and franchisee.
Doug Groves Intro 00:00:40
Segment 1 00:02:41
Get to know Get to know Doug
Segment 2 00:16:17
Topic Segment – Insurance 101 for Franchisors
Segment 3 00:38:19
Topics discussed in this episode:
Basic coverage that all business owners should have:
- Property (property, fixtures, furnishings, and equipment)
- General liability (slips and falls)
- Workers’ Comp (employees injuries and lost wages)
- Auto (company owned vehicles)
- Employment Practices (HR related risks)
- Umbrella (covers over and above the above mentioned)
Every insurance policy has a purpose.
Umbrella policies are a cheap way to purchase vast amounts of insurance for a much lower price
When you are deciding on limits for each type of insurance:
- Property: The property limits should be equal to the replacement cost of the property it is covering
- All other: The rule of thumb is that you make the value of the insurance policy to be more attractive to a would-be plaintiff than your personal assets.
Best Practice: Select an insurance broker who has experience in providing insurance for companies in your same industry. They will know which questions to ask in order to recommend the right options for you.
The question is answered, why does this line appear in all franchise agreements and franchise operating manuals: “All liability insurance policies must name us (the franchisor) and any subsidiaries that we designate as additional insured.”
We answer the question, why do franchisors require franchisees to carry certain levels of insurance.
What is the EZCert program and how does it help franchisors manage all of the insurance certificates from all of their franchisees – for FREE.
Program Insurance Group
FranMan Inc. (Franchise Manuals)
Notable mentions in this episode:
Book: Killing the Sacred Cow
By Garrett B. Gunderson
Our culture is riddled with destructive myths about money and prosperity that are severely limiting the power, creativity, and financial potential of individuals. In Killing Sacred Cows, Garrett B. Gunderson boldly exposes ingrained fallacies and misguided traditions in the world of personal finance. He presents a revolutionary perspective that can create unprecedented opportunity and wealth for thoughtful, mission-driven individuals.