Understanding Insurance Risks Of Franchise Owners: The Allen Thomas Group

Akron, Ohio -

The Allen Thomas Group, based in Akron, OH, has published new materials that aim to help franchise owners protect themselves from all kinds of risk. As a premier insurance agency that assists clients in such matters, The Allen Thomas Group’s advice can prove invaluable to franchise owners across the region.

Among these new materials is a blog post that can be found online. Titled ‘Understanding the Insurance Risks of Franchise Owners,’ it explores what franchise owners should seek to understand about the risks they and businesses will typically face — and what they can do to both mitigate said risks as well as prepare for any eventual challenges they could face. Find the post here: Understanding Insurance Risks Of Franchise Business Owners.

“As a franchisee,” the post says, “you're not immune to risks, from property damage to legal issues. But fret not; we've got you covered! Learn about the insurance coverages crucial for franchise owners, like Commercial Property Insurance, General Liability Insurance, Directors and Officers (D&O) Insurance, Employment Practices Liability (EPLI) Insurance, and more.”

This may seem too complicated to learn in a single sitting, especially if the business’ management team is busy keeping it afloat and laying the groundwork for future success. However, the firm strongly advises everyone in this situation to find the time sooner rather than later to educate themselves about the circumstances in which their entire operation could be at risk.

In most cases, The Allen Thomas Group says the old adage regarding prevention being better than a cure would apply equally well to legal situations as it would to medical concerns. By setting up a business’ regular operations to avoid liability where possible, a team can do much to avoid both the stress and expense of resolving any complicated legal problems that may arise. See more at the following link: Protecting Your Company From A Lawsuit.

However, there will come a time when further protections will be needed, and this is where firms like The Allen Thomas Group are best suited to help. “Worried about specific risks influencing your insurance decisions?” asks the firm in their blog post. “We've got insights on operational, legal, reputation, regional, and cybersecurity risks. Tailor your coverage to your franchise's unique needs. Explore effective strategies to mitigate insurance risks! Review policies regularly, develop a comprehensive risk management plan, stay informed about industry trends, and leverage technology solutions designed for franchise owners.”

The firm’s advice is extensive, but they say a good first step is always to review the franchise agreement carefully (ideally well before anything is signed). A franchisor will often have its own list of insurance requirements and obligations, and it is highly advisable to maintain compliance in this regard.

The next step should be to seek out the assistance of an insurance firm or team specializing in this field, especially when protecting franchise businesses from liability. As a client, they should be frank and open about their concerns, and a full evaluation of their situation will reveal the specific insurance needs of the franchise in question. From here, the appropriate coverage can be recommended.

Business Interruption Insurance, for instance, can provide coverage for loss of income and additional expenses that may be incurred when operations are halted (temporarily) due to covered issues. While this is fairly straightforward, it is an example of how invaluable certain types of insurance can be when a franchise’s financial stability is threatened due to unavoidable disruptions.

The Allen Thomas Group adds that franchise insurance needs have a habit of evolving over time, so it is advisable to periodically review insurance coverage (especially concerning limits) to ensure they still meet all operational needs. Naturally, the firm can help clients perform such reviews as part of their services.

Franchise owners are encouraged to contact The Allen Thomas Group for more personalized assistance analyzing their insurance needs and more. The firm can be reached via phone, email, and social media. Further details regarding their full range of services can also be found on the firm’s official website.