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After investing money, time, and resources into launching your franchise, protecting your investment from the unexpected makes good financial sense. There are several types of business insurance policies that are designed to provide coverage against natural and man-made disasters. Here are a few of the most common plans to consider having in your arsenal.

The Top Business Insurance Plans

1. Loss of Income

There are times when a company may have to temporarily close, such as recovering after a fire. During this hiatus, owners can still have funding to continue their operations if they have a loss of business income policy in place. The way the plan generally works is the carrier will pick up the tab for the net profits a firm would have earned during the shutdown.

2. General Liability

Another important policy franchise owners should strongly consider having is general liability insurance. The plan provides coverage should a customer or vendor sustain an injury while on the company's premises and file a lawsuit. In addition, the policy extends coverage to negligence caused by faulty property that may have caused a person's injuries.

3. Umbrella Insurance

business insuranceFor larger claims, umbrella insurance typically serves as an extension of general liability coverage. The policy's financial thresholds are often available in the million dollar-plus range. To illustrate, if a business owner has a general liability with a coverage amount of $1 million and a person files a claim for $2 million, the umbrella insurance plan pays the $1 million difference

4. Workers Compensation

Unfortunately, there is a possibility that employees will be injured on the job. A workers compensation policy pays for the medical expenses of those who have sustained injuries. In most cases, the plan also covers wage loss while an employee recovers. Depending on the policy, an injured employee gives up their right to sue their employer if they agree to use workers compensation. It varies by state, but the coverage is often required based on the number of employees at a company.

5. Food Contamination

Restaurant franchises are susceptible to food-borne illnesses caused by contamination from unclean kitchens, utensils, and storage spaces. Should customers or employees become sick due to exposure, a food contamination insurance policy will cover their medical expenses. The plan can also include coverage to buy new food, cleaning equipment and services, and income loss during any shutdowns by health board agencies.

 

If you own a franchise or are thinking about investing in one, having the proper business insurance policies in place offers financial peace of mind. Let the experienced and friendly team at Custis Insurance Service in Sheffield Lake, OH help you secure affordable and comprehensive coverage. The agents have extensive knowledge of franchises and the unique needs of these type of operations. For free insurance quotes, call (440) 949-7171 today. Visit the website for extensive information on protecting your company.

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