Just like individuals, professionals too must take out insurance to insure the assets of their business. Insurance companies have also developed a complete product for their destination : professional multi-risk insurance. In the case of a franchise business, there is no exception to the rule. It is highly recommended for a franchisee to take out insurance.
Insurance, an obligation or a choice?
Although recommended, a company is not required to be insured. That said, it all depends on the situation of the company or the profession in question. In some cases, the possession of a professional insurance becomes in effect an obligation either because of the law or because of the texts which govern the activity.
It is therefore necessary to inquire about the insurance obligations related to his activity or profession to find out if his company must have insurance.
Among the professions concerned by the insurance obligation:
- health professions (medical liability insurance),
- legal professionals,
- building professionals (construction work insurance, ten-year insurance),
- occupations involving motorized land vehicles…
Even if your company is not concerned by the obligation, it remains however recommended to insure it.
Should the franchisee have the same insurance as their franchisor?
Given that he is above all an independent entrepreneur, the franchisee is not under no circumstances obliged to take out the same insurance as its franchisor. However, it would be interesting for him to benefit from the experience of his franchisor in this area or at least to take advantage of the partnerships he has signed with insurance brokers or insurers.
Why ? On the one hand, because creating a franchise amounts to reiterating a concept and respecting all the fundamentals that define it: company organization, types of products, processes, customer relations, etc. an appropriate insurance policy is therefore needed to to maintain activity.
On the other hand, given that franchisors have already experienced claims and made errors that they have corrected, they have the necessary experience to be able to explain to insurers the risks incurred and thus benefit from the most appropriate insurance.
By relying on his franchisor to choose his insurance, a franchisee is certain of take out suitable insurance in his case and benefit from advantageous prices thanks to the partnerships forged between the head of the network and the insurers or insurance brokers.
What does professional multi-risk cover?
Local, associated installations, floor coverings and ceilings; professional furniture and equipment; goods ; funds and values… Professional insurance insures all of these types of property and more.
These assets are exposed to many risks such as: fire, flood, water damage, acts of vandalism, explosions, natural disasters, etc.
Insurance companies therefore offer businesses a complete product : multi-risk professional insurance. And because all companies do not all have the same needs, insurers put in place basic cover which can be supplemented by extended guarantees to cover specific risks.