Franchisor Insurance: Cost & Quotes From $45/mo

Table of contents

Consider purchasing franchisor insurance. You never know when a fire will devastate your retail franchise. Your position is more perilous if your business is in the food industry. For example, a customer can file a foodborne illness lawsuit against your franchise restaurant. Last but not least, don’t forget that insurance might be a requirement when planning to start a vending machine franchise. Consider reading this guide and discover what policies are included in franchisor insurance, their coverage limits, and more. 

General Liability Insurance for Franchisors

CoverWallet  NEXT (Best) Thimble  Hiscox The Hartford
Per occurrence limit  $1,000,000 $500,000/$1,000,000 $1,000,000/$2,000,000 $300,000/$2,000,000 $1,000,000
Aggregate limit  $2,000,000 $1,000,000/$2,000,000 $1,000,000/$2,000,000 $300,000/$2,000,000 $2,000,000
Products and completed operations aggregate limit  $2,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000
Advertising injury coverage aggregate limit  $1,000,000 $1,000,000 $1,000,000 $1,000,000
$1,000,000
Tenant’s legal liability coverage limit  $100,000 $100,000 $5,000 $100,000 $100,000
Waiver of subrogation included? Yes No Included Can be included No
Hired/non-owned auto liability coverage included? Yes No Excluded Can be included No
Equipment breakdown floater included? No  Yes Yes Can be included Yes
Can you get a certificate of insurance online? Yes Yes Yes Yes Yes
Name additional insureds? Yes Yes Yes Yes Yes
Deductible $0 $0 $0 $0 $0


You are not required by law to purchase this franchisor insurance. However, it’s important to purchase general liability insurance as it provides you with coverage for the following:

  • Third-party bodily injuries and property damages

  • Reputational harm, libel, slander, and defamation lawsuits

  • Product liability claim

 In connection, this business insurance doesn’t provide you with the following coverages:

  • Costs of repairing, rebuilding, and replacing your commercial business property

  • Employee injuries

  • Auto-related incidents and accidents

  • Employee discrimination lawsuits

Coverage Limits for General Liability Insurance for Franchisors

The coverage limits under this franchisor insurance depend on the type of liability claim. For instance, bodily injury and property damage liability claims range between $1 million per occurrence to $2 million aggregate. The coverage limits for advertising and personal injury liability range between $1 million to $5 million.


Add-Ons to General Liability Insurance for Franchisors

  • Product liability extension–This optional franchisor and franchise business insurance covers claims arising from any defective products or services

Errors and Omissions Insurance for Franchisors

CoverWallet  NEXT  Thimble (Best) Hiscox The Hartford
Per occurrence limit  $1,000,000 $1,000,000 $1,000,000/$2,000,000 $1,000,000 $1,000,000
Aggregate limit  $2,000,000 $2,000,000 $1,000,000/$2,000,000 $2,000,000 $2,000,000
Name additional insureds? Yes Yes Yes Yes Yes
Waiver of subrogation included? Yes No Yes Yes No
License defense coverage included? No No No No Can be included


Errors and omissions insurance confers financial immunity if you are accused of performing an act of negligence while providing your professional services to clients. This is also called professional indemnity insurance for franchisors. You can purchase professional liability insurance as an add-on to general liability or as an optional policy. 


Coverage Limits for Errors and Omissions Insurance for Franchisors

$1 million-$2 million is the approximate coverage limit for franchisor e&o insurance. An insurer can increase or decrease your coverage limits depending on the risks your franchisor business is exposed to and any contractual requirements you may be obligated to.

Compare Cheap Franchisor Insurance Quotes Online

Get all the best quotes from leading providers in a click of a button!

Commercial Property Insurance for Franchisors

CoverWallet NEXT (Best) Thimble Hiscox The Hartford
Building coverage limit (minimum) $50,000 $25,000 $25,000/$500,000 $25,000 $60,000
Contents coverage limit (minimum) $50,000 $25,000 $25,000/$500,000 $15,000 $60,000
Outdoor signs Excluded $2,500 Excluded Included Excluded
Accounts receivable  Excluded Excluded $5,000/$10,000 Included Excluded
Money and securities Excluded $2,500 $1,000 Included Excluded
Lock and keys  Excluded $2,500 Excluded Included Excluded
Business interruption floater Excluded Included Included Included Excluded
Equipment breakdown floater Excluded Included Excluded Included Excluded
Inland marine insurance floater Excluded Excluded $10,000 Excluded Excluded
Employee dishonesty floater Excluded $5,000 $2,500 Excluded Excluded


This franchisor insurance covers your physical location and the assets found in them. Under this policy, an insurer protects you from incurring the costs of repairing damaged commercial building and replacing or repairing the physical business properties inside. The perils your commercial property is insured against include:

  • Fire

  • Vandalism

  • Theft

  • Weather-related incidents such as windstorms

Coverage Limits for Commercial Property Insurance for Franchisors

Commercial property insurance provides $20,000-$60,000 coverage for the building and the contents. How much an insurance carrier will pay you as the coverage limit under this policy depends on the market value of your commercial property. 


Add-Ons to Commercial Property Insurance for Franchisors

  • Sewer or drain backup coverage–This optional franchisor insurance coverage shields you from expensive costs to repair damages in case the sewer or drainage of the building backs up. Some of the costs you get covered under this add-on include cleanup and costs of repairing and rebuilding your damaged commercial building

  • Ordinance or law coverage–If your franchisor business is located in states where the state’s laws enforce that commercial buildings be constructed or repaired to a certain standard, this add-on will cover you from incurring expenses of rebuilding a commercial property up to the set or current building standards after the occurrence of an insured peril

Business Owner’s Policy for Franchisors

CoverWallet NEXT (Best) Hiscox Thimble  The Hartford
General liability aggregate limit  $2,000,000 $500,000/$2,000,000 $300,000/$2,000,000 $1,000,000/$2,000,000 $1,000,000/$2,000,000
Commercial property coverage limit  $50,000 $25,000 $25,000 $25,000/$500,000 $75,000
Optional policies can be added? Yes Yes Yes Yes Yes
Name additional insureds for free? Yes Yes Yes Yes Yes
BOP discount? Yes Yes Yes Yes Yes


This bundled business insurance merges commercial property insurance, general liability insurance, and business interruption insurance into one comprehensive policy. A BOP protects your business against third-party bodily injuries and property damages, product liability incidents, advertising injuries, and reputational harm lawsuits. 

This policy also helps if your commercial property is damaged by fire, theft, vandalistic acts, and  weather-related incidents. You also compensated for lost income due to the sudden and temporary interruption of your income-generating business activities.


Coverage Limits for Business Owner’s Policy for Franchisors

A business owner’s policy offers a $1 million general liability coverage and $60,000 commercial property coverage.


Add-Ons to Business Owner’s Policy for Franchisors

  • Umbrella liability insurance–This add-on will provide you with backup financial aid in the event your business is required to settle a claim that surpasses your BOP coverage limits

Tools and Equipment Insurance for Franchisors

NEXT (Best) Thimble Hiscox The Hartford
Aggregate limit $3,000/$10,000 $2,500/$5,000 $15,000/$25,000 $5,000-$10,000
Covers hired and borrowed equipment? $3,000/$10,000 $2,500/$5,000 No Yes
Miscellaneous equipment also covered? $5,000/$10,000 No Yes Yes
Offered as an endorsement to general liability insurance? Yes Yes Yes Yes
Deductible $500 $500 $0 $0


This business insurance policy protects you from any financial losses after the tools and equipment you use for your business operations get stolen, lost, or destroyed by lightning, fire, theft, and acts of vandalism. 

If your franchisor’s business tools and equipment are damaged or destroyed by rust or corrosion, mold, or pests, then this policy won’t cover the costs of repairing or replacing them. Important to note is that this franchisor insurance is not an extended warranty, and its coverage only applies to moveable equipment and tools under five years of age.


Coverage Limits for Tools and Equipment Insurance for Franchisors

The coverage limits for this franchisor insurance range between $5,000 to $10,000 per item. The market value of your insured tools and the risks determine how much an insurer will pay you as the coverage limit if you serve them with a claim notice.


Add-Ons to Tools and Equipment Insurance for Franchisors

  • Off-premises coverage–This add-on covers your franchisor’s tools and equipment located or stored away from your business premises

  • Business interruption coverage–In the event you lose income due to the disruption of your business activities due to your working tools and equipment getting stolen, lost, or damaged by the insured peril, then you can use this add-on for compensation

Commercial Auto Insurance for Franchisors

Commercial auto insurance for franchisors is also known as business auto insurance for franchisors. Under this policy, your insurance covers the legal bills, medical expenses, and property damages if your commercial vehicle gets involved in an accident. It’s only in Virginia and New Hampshire where this franchisor insurance is not required


Coverage Limits for Commercial Auto Insurance for Franchisors

The coverage limits for medical payment coverage under this franchisor insurance ranges between $5,000 to $10,000 per person. The liability coverage under this policy ranges between $500,000 to $1,000,000 per occurrence.


Add-Ons to Commercial Auto Insurance for Franchisors

  • Accessories coverage–This covers electrical and non-electrical commercial vehicle accessories against theft and damage due to unprecedented risks. You can cover a GPS station announcer, vehicle flooring, front-view cameras, and curtains

  • Consumables coverage–This add-on grants coverage if your commercial vehicle’s consumables get damaged or destroyed by an insured peril. Bolts, screws, washers, and brake fluid are the consumables covered 

Workers Compensation Insurance for Franchisors

Only two states in the USA don’t require employers to purchase workers’ compensation insurance for franchisors. This franchisor insurance is also known as workers comp insurance. This covers medical and ongoing care costs if your employees sustain injuries and illnesses. 

This policy also compensates your employee for a certain percentage of their lost wages following a job-related injury or disease that renders them incapable of performing their designated duties. Your workers’ comp insurance premium rates are determined by your business payroll, location, number of employees, risks they are exposed to, and claims history.


Coverage Limits for Workers Comp Insurance for Franchisors

There are no coverage limits for workers comp insurance for franchisors.





Excess Liability Insurance for Franchisors

This franchisor insurance policy provides you with a financial backup if your primary policy coverage limits get exhausted. Suppose you are liable to pay for third-party bodily injury of $500,000 and your general liability insurance coverage limit is $400,000. You can use your excess liability insurance to clear the remaining $100,000 that surpassed your general liability policy. 


Coverage Limits for This Franchisor Liability Insurance

The coverage limit of this franchisor liability insurance is $1 million-$10 million. Please note that you can have your insurance provider decrease or increase this coverage limit to suit your business needs and your specific primary policy.

Rank and Review Insurance Companies

Help others make better decisions

Show more

Franchisor Insurance Cost

Cost per Month Cost per Year Deductible
General liability insurance $45 $540 $0-$500
Errors and omissions insurance $50 $600 $1,000-$2,000
Excess liability insurance $51 $612 $1,000-$2,000
Commercial property insurance $83 $996 $1,000-$2,000
Business owner’s policy $99 $1,188 $1,500
Tools and equipment insurance $53 $636 $500-$1,000
Commercial auto insurance $68 $816 $500-$1,000
Workers compensation insurance $101 $1,212 $2,500-$5,000


The average franchisor insurance cost is $45 per month or $540 per year for a $1 million general liability policy. Factors that affect premiums are claims history, business history, policy limits, deductibles, annual revenue, location, and number of employees. Here’s a table showing the cost of a $1 million general liability insurance from companies we recommend:

Cost per Month Cost per Year Best for
NEXT $24 $288 Best overall; Fastest general liability insurance for franchisors
CoverWallet $27 $324 Comparing franchisor insurance quotes online
The Hartford $29 $348 Workers compensation insurance for franchisors
Tivly $33 $396 Comparing franchisor insurance quotes over the phone
Thimble $36 $432 Temporary coverage for franchisors
Hiscox $38 $456 Worldwide coverage for franchisors

Compare Cheap Franchisor Insurance Quotes Online

Get all the best quotes from leading providers in a click of a button!

Best Franchisor Insurance Companies

Here are the best franchisor insurance companies. Read some of the reviews below to know their pros, cons, and average rate for a $1 million general liability insurance


NEXT Franchisor Insurance

Pros 

  • Best overall

  • Issues an online proof of insurance instantly

  • Fastest general liability insurance

  • Great customer service and reputation

  • Excellent rates

  • Outstanding value for money

  • Get a 10% discount if you buy two or more policies 

Cons

  • Couldn’t find any

NEXT is a 100% digitally operated and privately owned insurance company that was founded in 2016 by Guy Goldstein, Nissim Tapiro, and Alon Huri. The AM Best has independently rated this USA-based insurer as an A- insurer.

Best for: Best overall; Fastest general liability insurance for franchisors 

Average cost: $24 per month

Our rating: 10/10 

                                   

CoverWallet Franchisor Insurance

Pros

  • CoverWallet works with reputable insurance providers

  • It provides you with speedy and free quotes

  • Its official website is user-friendly

Cons

  • Not an insurance company but an insurance broker

CoverWallet is a digital insurance company that was founded in 2016 by Inaki Berenguer and Rashmi Melgiri. As of today, this adept insurer is owned by Aon PLC Firm. Through its website, this B-rated insurance carrier provides you with coverage recommendations, claims support, and automatic risk analysis features.

Best for: Comparing franchisor insurance quotes online 

Average cost: $27 per month

Our rating:  10/10


The Hartford Franchisor Insurance

Pros

  • It provides its insurance coverage services to all the 50 states

  • Its policies are competitively priced

  •  It provides lifetime renewability for its auto policies

Cons

  • Limited add-ons to general liability insurance

The Hartford has a considerable underwriting experience. This company’s workers compensation insurance has a solid reputation. The Hartford approves claims quickly and ensures that covered employees receive adequate benefits. Both the AM Best and the Best Bureau Business rate Hartford as an A+ insurance carrier.

Best for: Workers compensation insurance for franchisors

Average cost: $29 per month

Our rating:  10/10


Tivly Franchisor Insurance

Pros

  • You can have its policies customized to suit your Franchisor’s business needs

  • It’s convenient for novice policyholders

  • Compare quotes over the phone

Cons

  • You need to talk to a representative to get quotes 

Tivly is an online insurance agency that was founded in 2009. This privately owned insurance agency whose headquarters are located in Norman, Oklahoma, USA was previously known as CommercialInsurance.net. This insurance agency specializes in helping small-scale business owners find affordable and customizable business insurance coverages from preferred insurance carriers. Call now to compare quotes over the phone. 

Best for: Comparing franchisor insurance quotes over the phone

Average cost: $33 per month

Our rating: 9/10


Thimble Franchisor Insurance

Pros

  • It’s possible to purchase its coverage through its mobile app

  • You can file your claim report 24/7

  • It provides you with a no-obligation quote

  • Its policies can cover you for an hour or a day

Cons

  • You can’t reach customer service by calling 

Thimble is an online insurance company that facilitates its customers with the acquisition of temporary and on-demand coverage options that can be bought through its official mobile app. This BBB-accredited member is rated as an A+ insurance company by the BBB and as an A-grade insurer by the AM Best.

Best for: Temporary coverage for franchisors

Average cost: $36 per month

Our rating:  9/10


Hiscox Franchisor Insurance

Pros

  • It provides its insurance coverage worldwide

  • It underwrites its policies

  • It’s dependable since it has been in operation for the last 112 years

Cons

  • Its coverage options are not available in Alaska

Hiscox was founded in 1910. This globally recognized insurance carrier has its headquarters located in Bermuda. As of today, this A-grade AM Best-rated insurance provider facilitates its customers with the acquisition of affordable and easy-to-claim personal and commercial insurance policies.

Best for: Worldwide coverage for franchisors 

Average cost: $38 per month

Our rating:  9/10

Recent Reviews

Recent Posts


Additional Business Insurance posts