Are you fully protected?

Last time we looked, in depth, at the main types of liability insurance you would need to consider when starting out a new franchise business; employers’ and public liability. However there are a considerable number of franchise businesses which have other major considerations when it comes to ensuring they hold comprehensive business insurance.

It is easy to understand when you would need employers’ liability insurance. If you have employees you need employers’ liability insurance. It is that simple.

It’s the same with public liability. If you meet with your customers in any capacity, whether they come on to your property, or you onto theirs, you should consider maintaining quality public liability insurance.

So, what happens if you don’t meet with your customers? Accountants, for example, may never meet their clients. Do you still need insurance?

Well, not legally, but it would be a very brave person who chose not to maintain certain levels of cover, especially with the blame culture so prevalent nowadays.

Insurance to cover any advice you give Professional and Management Risks Insurance is an all-encompassing name to cover a variety of insurance products designed to protect you and your company from mistakes made by company directors and their employees. It includes the following products:

Legal Expenses Insurance This insurance covers costs associated with the provision of legal advice in the event of a claim being made against you or your company.

Professional Indemnity Insurance This type of insurance is designed to cover losses incurred as a result of mistakes being made in an advisory capacity.

Directors & Officers Insurance This insurance protects against legal costs and compensation made for claims made directly at company directors and/or officers.

To make it easier to understand, let’s look at an example: Imagine you are a building services engineer. Due to your design errors the completion of a new office block is delayed incurring massive additional costs in lost revenue and rescheduling. The developer sues you for the cost. Without Professional Indemnity Insurance to pay for these costs, you could be financially ruined.

Let us now assume that your company successfully fights off the claim – but the client decides to now sue you personally for their loss.

This is a personal claim but as you have Directors and Officers Insurance you, again, would be covered for any losses incurred. Giving advice, in any capacity, opens you up to litigation. With people more and more likely to look for others to blame for any loss making sure you have adequate protection in place makes good business sense.

There are a host of other insurance products that you may well need to consider; cyber-liability, revenue protection/business interruption, business travel insurance and commercial motor products are just examples. If you are not 100 per cent sure about which insurance products are right for your business then getting advice is the best advice!

How to make sure you’re well-protected For an in-depth corporate and professional risk assessment, please contact us using the details below. We have a dedicated team specialising in franchise insurance.