At Samurai Sam’s®, we have an incredible opportunity for you to take hold of. Starting up a new franchise is exciting, but it also comes with a host of responsibilities and tasks you may never have thought of previously. Business insurance may not be on your mind, but protecting a major financial investment is essential. It also is different from insuring residential properties with different variables, based on location and what you choose to do with your franchise. As a franchise holder, we offer assistance with locating potential insurance plans and service providers, but as every state is a bit different, there are different regulations to consider. Additionally, if you want to incorporate delivery services (which is great for college towns), you need to bring in additional insurance coverage. Here are some insurance options to look into. Each offers benefits when covering the franchise investment.

PROPERTY INSURANCE

Whether buying or renting you need property insurance. If you rent a building, most damage sustained to the facility and property externally (such as someone outside breaking a window) is the responsibility of the owner to repair the damage (unless otherwise noted within the rental agreement). If you are the owner, property insurance goes a long way in protecting your investment. It also generally covers equipment, displays, signs, furniture and other expensive material you have. This is covered in the event of fire, theft and storms. However, do keep in mind that if you are in an area where flooding is more common, it likely comes in a separate form of insurance. We recommend looking closely at what exactly is covered in your property insurance, but it is still something you likely need.

PROFESSIONAL LIABILITY INSURANCE

Not as vital as other forms of business insurance, but one to consider. With professional liability insurance, it helps protect errors and omissions within your business structure. If issues come up and legal action is taken against you for negligence based on any failure to perform, this coverage protects you. Different insurance providers offer different PLI insurance plans. As is the case with any other form of business insurance, our franchise is here to assist with identifying desirable options.

WORKER’S COMPENSATION

As an employer, this is a valuable insurance option. While injuries to employees within the work place at Samurai Sam’s are minimal, we can’t say it never happens. Perhaps someone cuts their finger while chopping vegetables or seriously burns their hand on the griddle. Depending on the situation you may be liable for the injury and payment for their medical bills and time away from work. Instead of paying out of pocket, worker’s compensation usually covers it.

VEHICLE INSURANCE

If you implement delivery services within the franchise, vehicle insurance is required. This is one area we have seen far too many other franchises and their owners run into trouble. Often the business owners assume that if the driver already has his or her own car insurance they are protected. That is not the case because the vehicle is being used for business purposes. If the driver is involved in an accident your business may be liable. So, if there is any substantial driving for your franchise, you’ll need vehicle insurance.

BUSINESS INTERRUPTION INSURANCE

Another form of business insurance to consider. If you live in an area where major storms are common, your store may be shut down for several days, if not longer. This is money out of your pocket. Business interruption insurance protects you from this and helps pay for the lost income.

All of these are kinds of insurance we recommend looking into for complete franchise protection.