Insurance Solutions for Franchise Systems | Lockton Affinity

At Lockton Affinity, we recognize that your franchise system brings unique insurance challenges.

With that in mind, we’ve constantly refined our ability to build and administer solutions for specialized group program needs. Today, we work with more than 90 franchise concepts to deliver customized insurance programs with integrated risk management solutions designed to fundamentally reduce the cost of risk for the entire franchise system.

To accomplish this, we’ve developed a risk management system specifically for franchisors. This unique approach is founded on our proprietary six principles of franchise risk management and involves our analysis of your product and service offering, benchmarking and ongoing reviews of insurance requirements and the creation of unique solutions for both your headquarters and franchise locations.

We have the expertise to deliver proven results and can manage compliance to ensure you can reduce redundant insurance charges and lower insurance premiums for your entire system.

Lockton Affinity works with over 90 brands which
represent over 60,000 locations in the United States.

Sponsor insights

“Lockton’s understanding of, and experience in, the restaurant industry enables them to respond quickly to our needs with the most effective solutions. Their experience, dedication and strong carrier relationships are the reasons we trusted them to take over the administration of our program for us so we could focus, once again, on what we do best.”

Greg Larsen
Director of Taxes
American Dairy Queen Corporation

Coverage offerings

Comprehensive coverage options designed specifically for franchisors and franchisees

Key franchisor insurance coverage

Franchisor Errors & Omissions (E&O) Liability

Errors & Omissions (E&O) Liability Insurance will protect your franchisor executives and franchise system from litigation brought by franchisees, when their expectations fall short. Frequent allegations can include violations of FTC franchise rule, state franchise registration or disclosure statutes, sale of an “unregistered” franchise, etc. E&O Liability will cover the costs of certain legal fees and settlements that could threaten the financial assets and ongoing future of the franchisor.

Management (D&O) Liability

Your executives and Board of Directors are at risk for litigation brought by customers, franchisees and investors from claims of mismanagement or breach of fiduciary duties. Management (D&O) Liability insurance provides protection for their personal assets.

Employment Practices Liability (EPL)

As an employer, franchisors are at risk for claims from employees alleging discrimination, sexual harassment, retaliation and wrongful termination. Employment Practices Liability insurance covers franchisors for claims stemming from the employment process.

Key franchisee insurance coverage

General Liability Insurance

General Liability Insurance provides your franchisees protection from third party claims alleging damages for incidents such as bodily injury, personal injury or property damage. We understand franchisees face a variety of risks in the day-to-day management of their businesses and because we work with large numbers of franchisees countrywide, we not only understand these risks but we’re experienced with designing tailored General Liability Insurance solutions for franchise systems.

Property Insurance

We design customized business Property Insurance coverage based on the specific needs of your franchise system. With this goal in mind, our team works directly with your franchisees to educate them on the coverage requirements they need and answer any questions they may have.

Commercial Auto Insurance (including Non-Owned Auto)

If your franchisees use vehicles as part of their business operations, a commercial auto policy should be included in their insurance program. Commercial Auto Insurance provides coverage for vehicles in the event they incur physical damage, cause physical damage or bodily injury to others. If appropriate, we also include non-owned auto coverage which protects the franchisee from claims for damages involving bodily injury or property damage caused by someone working on behalf of the business while using a vehicle not owned by the business.

Umbrella Liability

An Umbrella Liability policy provides your franchisee additional liability coverage in the event they want coverage above and beyond their primary policy limits. Typically an Umbrella policy provides these limits over those already contained in the General Liability and Auto Liability policies. Our team members work with each franchisee to review their current policy and consult on how to structure this additional coverage.

Professional Liability (E&O)

Professional Liability Insurance covers the cost of certain legal fees and judgments/settlements that your franchisees may face as a result of claims and lawsuits against them based on the advice or services they provide. Your Professional Liability insurance solution is based on your franchise model and services so franchisees receive coverage that meets their needs and yours.

Workers’ Compensation Insurance

Workers’ Compensation is a state-regulated insurance program that helps ensure employees who suffer job-related injuries and illness can get the care they need. State statutes vary and determine what injuries are covered and whether the insurance is mandatory for the franchisee to secure. Using our countrywide experience, we’re able to advise franchisees on what’s required and how this coverage takes care of their employees.

Additional coverage offered

Industry experts

Our experienced insurance experts want to speak with you about your organization’s insurance needs. We will help you design an insurance solution that meets your coverage requirements.

Patrick O’Farrell

Reid Robson

Industry insights

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