Buying into a snow removal or property maintenance franchise gives you a brand, systems and often a customer pipeline. It also comes with an insurance schedule written by the franchisor that you are required to meet, and sometimes a preferred broker or program.
What Franchisors Typically Require
- Minimum general liability limits, often higher than an independent would carry
- The franchisor named as additional insured
- Commercial auto for branded vehicles
- Equipment insurance on franchise supplied equipment
- Workers compensation compliance
- Proof of coverage before opening and at each renewal
Program or Independent Broker?
Some franchisors offer a group insurance program. It can be convenient and competitively priced, but you are usually free to buy elsewhere as long as you meet the requirements. Getting an independent quote from a specialist broker tells you whether the program is a good deal.
Franchise Specific Considerations
- Brand liability. Your work reflects on the brand, and the franchisor's contracts may flow requirements down to you.
- National accounts. Some franchises service national clients with their own insurance schedules.
- Territory growth. As you add trucks and crews, keep your broker informed so coverage grows with you.
Check your franchise agreement's insurance section carefully, and share it with your broker before you commit.
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Frequently Asked Questions
Do I have to use the franchisor's insurance program?
Usually not, as long as you meet the franchise agreement's requirements. Compare with an independent quote.
Why does the franchisor need to be an additional insured?
It gives the franchisor coverage under your policy for claims arising from your work under the brand.