What Is Franchise Insurance – What Kind of Coverage Do You Need?

No matter the business you run, insurance is a necessity. For franchise business owners, the protection that insurance cover provides makes the difference between a successful franchise and a vulnerable one. If you are looking to learn more about other forms of insurance, read on to understand the benefits of obtaining a franchise insurance policy with Steadfast Eastern.

Since the beginning of the COVID-19 pandemic in 2020, many businesses have suffered a downturn in profits, with uncertainty still rife due to lockdowns and other factors. Franchise and retail insurance, like many other kinds of business insurance, are in today’s world more than an essential for businesses affected by the pandemic.

Some of the cover options you should consider for any franchise business owner include:

Business interruption

If you are unable to conduct your business due to some unforeseen event occurring under the property section such as fire, water damage, sprinkler leakage or even a lock down of a shopping centre for a disease such as legionnaires disease, which results in the closure of your business, your income is likely to be affected, business-interruption cover can help alleviate some of this pressure.

Burglary

Burglary is an unfortunate and costly experience for many business owners, so having burglary cover is essential in case any of your property is stolen. It is also possible to gain cover for any damage caused to the property or equipment in the event of a burglary.

Liability

If you have a business that entails a lot of direct contact with customers, contractors or other visitors, liability insurance will provide cover in the event of personal injury or property damage to third parties related to your business. As legal action against a business could cost millions of dollars, liability insurance is another must-have option.

Fire and perils

Fire and perils cover relates to damage to a building, stock, contents or customer goods caused by fire, water, lightning or other events. As these kinds of incidents can occur when you least expect it and can cause significant amounts of damage, fire and perils cover should always be a consideration for your insurance policy.

Electronic equipment

Electronic equipment such as computers, tablets, cash registers or EFTPOS machines are necessary parts of many businesses, and if they fail or are damaged, the loss of data or productivity can be serious.

Goods in transit & marine cargo

If your business involves the shipping of large amounts of goods, either via land, sea or air, this kind of cover can help protect them across all stages of the delivery process.

Management Liability

This covers a range of management issues such as governance, finance and management activities faced by owners and managers of companies. Issues range from alleged mismanagement of the Company by the Directors (Directors and Officers Liability), Staffing issues, e.g. unfair dismissal of staff, Crime losses – e.g. theft by staff, Statute Law Breaches – e.g. Work cover and Tax Audit costs. Hence, the section provides cover for legal costs and compensation that arise from allegations you have caused loss to someone else and should be seriously considered.

Cyber insurance

This section is becoming so important in the 21st century with a heavy reliance on computers and the digital space. A cyber policy provides the business with protection against extortion, hacking, social engineered theft, stolen identity, privacy errors, telephone phreaking and more. Cyber crime is fast becoming one of the most concerning areas to many businesses large and small.

If you have any questions at all about how franchise insurance cover can work for you and your business, please give Steadfast Eastern a call on 1300 500 700 or contact us for a quote.