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.
| 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
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.
Product liability extension–This optional franchisor and franchise business insurance covers claims arising from any defective products or services
| 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.
$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.
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| 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
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.
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
| 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.
A business owner’s policy offers a $1 million general liability coverage and $60,000 commercial property coverage.
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
| 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.
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.
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 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
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.
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
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.
There are no coverage limits for workers comp 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.
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.
| 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 |
Get all the best quotes from leading providers in a click of a button!
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
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
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 works with reputable insurance providers
It provides you with speedy and free quotes
Its official website is user-friendly
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
It provides its insurance coverage services to all the 50 states
Its policies are competitively priced
It provides lifetime renewability for its auto policies
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
You can have its policies customized to suit your Franchisor's business needs
It's convenient for novice policyholders
Compare quotes over the phone
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
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
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
It provides its insurance coverage worldwide
It underwrites its policies
It's dependable since it has been in operation for the last 112 years
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
1 / 5
Use anyone except Employers. Period. They are non-transparent and shameful. After I complained long enough to warrant a call from a supervisor, the supervisor called back from a PRIVATE NUMBER (no caller ID), left a message that they are not reversing their decision (without any communication with me), and failed to leave a phone number for me to call back. She was hiding! They also fact find via email and phone calls, which is terrific for speed and communication. However, after setting a precedence of email or phone calls, they send time sensitive information via email, without any heads up... they are hoping you miss it and forfeit via expiration. Evil policies. Go elsewhere.
1 / 5
This place is an absolute joke of a company and should be ashamed of the way they conduct business. I was hurt on the job at the end of July and it took them just shy of 7 weeks to issue out a paycheck to me. Yes the amount was back dated but still. Not many have the luxury of not receiving a paycheck for almost 2 months. To top it all off, the original adjuster marked me down for the wrong state which caused a problem from the get go, I've had 3 different adjusters now since each one can't seem to figure out the simplicity of my claim. All my paperwork which includes, my job, house, and drs visits all are from the same state and city but yet some how I have been filed under a completely different state 1500 miles away. They do not answer your phone calls or emails no matter how many you leave. I've had to escalate my frustrations to the supervisors of each of these individuals in order to even get some kind of response. I've had more communication and information given to me about my claim from the customer service representatives then the actual adjusters.......... please tell me how that works?! A serious overhaul needs to happen here in order to serve your clients the way they deserve to be taken care of. 10/10 do not recommend this company to a single soul on earth
1 / 5
I have never had the displeasure of working with a more incompetent and disrespectful person in my life. I’m an injured worker and the adjuster that was assigned to my case was named Carrie Furgeson. In the past 6 weeks that I’ve been injured and out of work I have only been able to get ahold of her twice, not for lack of trying. I have left countless voicemails, countless emails, and she ignores them all. When I am finally able to get ahold of her I’m greeted with terrible customer service. She is rude, she talks over me and I’m hardly able to get a word in edgewise. She spelled my name wrong on my documents even after I spelled it for her properly countless times, this caused a whole new issue with my bank. I have bill collectors from the hospital calling me demanding payment and Carrie Furgeson won’t do a single thing to help, or to get them paid. All of my documentation is in Colorado, my job is in Colorado, my address is in Colorado, all my Dr offices and appointments have been in Colorado and Carrie still managed to hold my claim because she wasn’t sure what state she needed to file it under. It’s been 6 weeks since my Injury and my company still hasn’t received the wage paperwork to fill out so they can get me my correct wages. When she’s not ignoring me she’s answering my questions with “I don’t know” well I don’t know how she got this job, because apparently she doesn’t know anything about it. She is a disgusting morose individual inside and out and I genuinely wish her the worst in all of her future endeavors. I highly recommend you don’t use this company. Please if you are a business owner and your looking into this company please don’t use them. I’m sure they have the cheapest payment and that’s why companies use them in the first place, but you will be doing your employees a grave disservice by forcing them to venture into this absolute dumpster fire of a company. I would rate 0/5 if possible but 1 was the lowest I was allowed.
5 / 5
Their general liability insurance purchase process is simply the best online experience I've ever had in my life!
5 / 5
As long as they cover your line of business, you're literally covered! best rates, best coverage, best online experience, best professionals, can't be happier that I chose them!
Not all those who wander are lost.
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