Franchisee Insurance Coverage Checklist
The coverages a franchisee business may carry — core, prevalent, and situational — why each matters, and the gap most often missed.
Pull out your current policy and check the box next to any coverage you can confirm is already in place — anything unchecked is worth a quick conversation with your advisor. Coverage checklist for single- and multi-unit franchisees, to use alongside the checklist for your type of business. Priorities reflect typical exposure for this class; confirm against your franchise agreement's insurance requirements.
Tick each coverage you can confirm you carry — anything left unticked is a good question for your next policy review.
| Have it? | Coverage | Why this business needs it | Priority |
|---|---|---|---|
| Commercial General Liability (Franchisor as Additional Insured) | Covers customer injuries at your locations and names the franchisor as your agreement requires. | Core | |
| Property & Business Income | Covers build-out, equipment, and inventory, plus income and continuing royalties while closed. | Core | |
| Workers' Compensation | Required by law and by nearly every franchise agreement. | Core | |
| Employment Practices Liability | Covers wage, harassment, and wrongful termination claims — often required, and claims frequently name the franchisor too. | Core | |
| Umbrella / Excess Liability | Adds the higher total limits most franchise agreements require. | Core | |
| Cyber / Privacy Liability | Covers customer data on brand POS and apps, including your share of a brand-wide breach. | Prevalent | |
| Commercial Auto / Hired & Non-Owned Auto | Covers service vehicles, deliveries, and staff errands. | Prevalent | |
| Crime / Employee Theft | Covers cash and inventory theft; often required by the franchisor. | Prevalent | |
| Contingent Business Income | Covers income lost when the franchisor's supplier, system, or brand event shuts you down. | Situational | |
| Liquor Liability | Needed if your concept sells alcohol. | Situational | |
| Abuse & Molestation | Needed for child-focused concepts (education, fitness, child care). | Situational | |
| Equipment Breakdown | Covers kitchen, HVAC, and specialty equipment required by the brand. | Situational |
The coverage gap most often missed
The gap most often missed by franchisees is the insurance section of their own franchise agreement. Agreements set minimum limits, require the franchisor to be named as additional insured on specific policies, and often require EPL, cyber, or crime coverage — and falling short can be a default, not just an uninsured loss. Employment claims add a second gap: workers often sue both you and the franchisor, and your indemnity may make you pay for both. Compare every policy to the agreement's requirements at each renewal, and confirm your EPL covers claims where the franchisor is also named.
Send us the checklist and we'll review your franchisee coverage line by line, then market it across multiple carriers that compete for your account.
Related: Franchisee Insurance · Franchisee Supplemental (apply) · All coverage checklists
Frequently asked questions
What insurance does a franchisee business need?
The core coverages for a franchisee business are Commercial General Liability (Franchisor as Additional Insured), Property & Business Income, Workers' Compensation, Employment Practices Liability, Umbrella / Excess Liability. This checklist also lists the prevalent and situational coverages worth considering, with a plain-English note on why each matters.
Is this checklist insurance advice?
No. It is a free educational tool to help you have a more informed conversation with a licensed professional. It affords no coverage and is not insurance, legal, or financial advice — only your actual policy language governs what is and isn't covered.
Can Cory Washington & Co. review my franchisee coverage?
Yes. Share your checklist and we'll review your program line by line, market your account across multiple carriers, and explain the trade-offs in plain English. Cory Washington & Co. LLC is licensed in all 50 states.
This checklist is a free educational tool from Cory Washington & Co. to help you review your own coverage and have a more informed conversation with a licensed insurance professional. It is general information only — not insurance, legal, or financial advice, and not a recommendation to buy, change, or cancel any policy. Coverage terms, availability, limits, and requirements vary by policy, carrier, and state, and only the language in your actual policy governs what is and isn’t covered. Checking or leaving blank any item above does not indicate that you are adequately insured or under-insured. Using this checklist does not create a client, agency, or fiduciary relationship. Always consult a licensed professional about your specific situation.