Franchisor Insurance Coverage Checklist
The coverages a franchisor 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 franchisors and area developers. Priorities reflect typical exposure; confirm against the system.
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 |
|---|---|---|---|
| Franchisor E&O (Professional Liability) | Covers franchisee claims over disclosures, support, and system advice. | Core | |
| Directors & Officers | Covers management decisions and regulatory inquiries. | Core | |
| Employment Practices (incl. | Joint Employer) Covers claims that treat the franchisor as a franchisee's employer. | Core | |
| General Liability (Vicarious) | Covers suits naming the franchisor over franchisee operations. | Core | |
| Cyber Liability | Covers system-wide breaches of franchisor-provided POS or data systems. | Prevalent | |
| Franchisee Additional Insured Status | Confirms franchisees' policies name the franchisor and respond first. | Prevalent |
The coverage gap most often missed
The most commonly missed gap for this class is franchisor E&O. General liability and D&O often exclude claims by franchisees over disclosures, fees, or system support — the core of franchisor litigation. Franchisors should carry franchisor E&O, disclose every fee in the FDD, and require franchisees to name them as additional insured.
Send us the checklist and we'll review your franchisor coverage line by line, then market it across multiple carriers that compete for your account.
Related: Franchisor Insurance · Franchisor Supplemental (apply) · All coverage checklists
Frequently asked questions
What insurance does a franchisor business need?
The core coverages for a franchisor business are Franchisor E&O (Professional Liability), Directors & Officers, Employment Practices (incl., General Liability (Vicarious). 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 franchisor 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.