A managed insurance set-up is one where an insurance program is developed by the provider to suit a particular franchise system, providing all the necessary types of cover for all parties involved. This means that when new franchisees come on board, they only need to ‘hook’ into the existing system.
Franchisees are not obliged to obtain insurance from an endorsed provider, but doing so can provide a number of advantages:
- Franchisees are assured that they have the required types and levels of cover, meeting the compliance requirements of their franchisor.
- They are likely to save the time that would normally be spent sourcing cover.
- Cost savings may result, especially without the need to buy all different types of separate cover.
- Stress-levels are reduced when it comes to obtaining the right insurance.
There are also benefits for the franchisor, such as:
- The franchisor is able to save the time and resources required to track their franchisees’ insurance cover, constantly ensuring it is adequate and up-to-date.
- They may save money on insurance through group purchasing power. Savings can also be passed onto their franchisees.
- Having the same customised and unique insurance cover across the franchise system creates a consistency and uniformity that might be lacking if all franchisees arranged individual separate policies.
Is franchisor-endorsed insurance for everyone?
Certainly, this type of insurance program makes the whole system of franchise business insurance simpler and much more streamlined. With advantages such as time and cost savings, reduced stress levels, and assurance of adequate cover, there is no real reason not to consider it.
Speak to the team at PSC NFIB to find out more.