We’ve all watched a “viral video” of employees or customers acting badly. With TikTok and Instagram, it’s easier then ever for people to share their bad experience. When you become a franchisee, you have the advantage of sharing the marketing, branding, menu and best practices with all of the other franchisees. On the flip side, you also share a Trade Name so, if another franchisee has a food contamination or other negative incident, your sales may be negatively impacted. Insurance coverage is available for this exposure. At Statement Insurance Agency, we have experience in placing this type of policy for our clients.

This is what HCC has to say about their Restaurant Recovery Product:

“The policy provides business interruption
coverage to a restaurant location in
the event of an incident. This coverage
encompasses loss of profits as well as
reimbursement of associated expenses
such as incident expenses, brand
rehabilitation costs, recall costs, extortion
monies and crisis management. Adverse
publicity in connection with an accidental
contamination or adverse publicity that is
found to be baseless is also covered. The
expenses associated with that incident
can be reimbursed for up to 18 months;
this coverage is available to restaurants of
any size domiciled in the U.S. and Canada.”

If you want a quote for Franchise Risk insurance or need help developing a robust insurance program for your franchise group, reach out and we can customize a plan for your franchisees that protects everyone. CONTACT US today!