Franchise Insurance

What Is Franchise Business Insurance?

Franchise insurance is a collection of business insurance coverages designed to help protect franchise owners. Like other businesses, owning a franchise comes with everyday risks. Having the right type of coverage can help you respond to setbacks and cover costly claims. Common types of coverages that make up a franchise insurance package include:

Business Owner’s Policy (BOP)
Workers’ compensation insurance
Commercial property insurance
General liability insurance

Why Does a Franchise Need Business Insurance?

Franchise owners need business insurance because they face risks during normal operations. Whether it’s a customer slip and fall or an employee getting hurt at work, you need different coverage to help protect your franchise.

Who May Needs Franchise Insurance?

If you own a franchise, you likely need some form of business insurance. We can help protect a variety of franchise operations, such as:

Subway restaurants
Retail franchises
Fast-food franchises

What Types of Insurance Does a Franchisee Need?

Some essential types of insurance a franchisee may need include:

General liability insurance to help cover claims that your franchise caused bodily injury or property damage to others.
Commercial property insurance to help protect the owned or rented equipment you use to operate your franchise.
Business income insurance which combines general liability, commercial property and business income coverage into one policy.
Workers’ compensation insurance to help protect your employees from a work-related injury or illness.
Professional liability insurance to help cover lawsuits claiming that your franchise made a mistake in the services given.

Not every franchise owner faces the same risks. You’ll likely need other types of coverage to protect your franchise from different risks.

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The Hartford knows the unique risks franchisees face. That’s why we designed our insurance solutions to help cover various risks.

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How Much Does Franchise Insurance Cost?

Insurance costs are specific to your franchise because every business owner has unique needs. Insurers look at different factors when determining costs, including:

Location
Annual revenue
Claims history
Payroll

The best way to find out how much your insurance cost will be is to get a quote.

You Don’t Have To Wait With Us

We know how important your time is. That’s why we offer the option to get your proof of insurance instantly online.

Taking Care of Your Franchise Team

Your employees are essential to your franchise’s success. If they get hurt or sick from their job, having the proper business insurance coverage can help them recover and return to work faster.

For every 100 employees, nearly three experience a non-fatal work injury or illness.¹

Workers’ Compensation Insurance

“One of my employees was stocking inventory and started complaining about his wrist and back hurting. He was diagnosed with a repetitive stress injury and had to take a few weeks off to attend physical therapy.”

Workers’ compensation insurance gives your employees benefits if they get hurt or sick from their job. This coverage can help pay for their medical bills and ongoing care costs.

Commercial Auto Insurance

“One of my employees was driving to a customer’s house for an appointment when he lost control of his car and crashed into a guardrail.”

Hired and non-owned auto coverage can help protect your employees on the road if they use their own vehicles for work.

Protecting Your Franchise Operations

Starting and running a franchise takes a lot of time and investment. To be successful, you need the right type of business insurance to protect your franchise from different risks.

The number of franchise businesses in the U.S. is expected to grow more than 2% in 2025.²

General Liability Insurance

“A customer slipped on our wet floor and hurt her leg. She ended up suing our restaurant to pay her medical bills.”

General liability insurance can help protect your franchise from claims it caused a bodily injury or damaged someone else’s property.

Mechanical Breakdown Coverage

“We couldn’t cash out any customers because our point-of-sale computer system broke. We had to close early and couldn’t open until the system was back up and running.”

Our Mechanical Breakdown Coverage can help protect the equipment you use to operate your franchise. It can help pay to repair or replace your broken equipment.

Covering Your Franchise Property

No matter what type of franchise you have, chances are it takes a lot of expensive equipment to keep it running. From costly kitchen appliances and dependable gym equipment to tools and supplies, franchise owners need to have the proper inventory to run their business. With franchise insurance, you can have peace of mind when disaster strikes.

Costs of equipment, tools and inventory can cost up to $150,000 depending on the type of franchise you’re operating.³

Franchise Upgrade Coverage

“A fire damaged a lot of the tools and equipment we use to run our business. When we tried to replace them, we found out we had to upgrade to newer equipment to comply with our franchise agreement.”

We offer Franchise Upgrade Coverage to help pay for upgrades to newer equipment following a covered loss.

Commercial Property Insurance

“One morning as I was opening the store, I realized the windows were broken, and some of our electronics were missing.”

Commercial property insurance can help pay to repair damaged property or replace equipment due to a covered loss, such as theft.

Invest in Franchise Insurance

We’ve worked with over 1 million small business owners in various industries. Our experience has helped us understand the unique risks you face as a franchise owner. That’s why we’ve made it easy for you to customize your franchise insurance policy to meet your unique needs. Get a quote today to protect your investment.

Frequently Asked Questions About Franchise Insurance

Why Is Franchise Insurance Important?

As the owner of a franchise, insurance coverage is important to help protect you from different risks you face during normal, everyday operation. Without insurance coverage, you’d have to pay out of pocket for claims. Whether it’s a customer falling in your store or a data breach resulting in lost personally identifiable information about your customers, claims can disrupt your operations.

What Does Franchise Insurance Cover?

Franchise insurance is made up of different types of coverages. This package commonly consists of a BOP, commercial property insurance, workers’ compensation insurance, general liability or commercial auto insurance. Each coverage covers specific types of claims. For example, if a customer falls in your shop and hurts themselves, a general liability insurance policy can help pay for their medical bills. Together, different coverages can provide well-rounded protection for your franchise.

How Do I Get Franchise Insurance?

The best way to get franchise insurance is to get a quote from The Hartford. We make it fast and easy for you to get the coverage you need.