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Additional Resources
Relay sales assets to consider
Ramp assets to consider and use:
ramp1.pdf
1.5 MB
ramp3.pdf
2.9 MB
ramp4.pdf
2.9 MB
Crumbl insurance documentation
A Business Owners Policy is the easiest option for most franchise owners because it combines the coverage you need for your store and your liability insurance into one affordable policy. The following required coverages can be included in a business owners policy:
Coverage for Your Store
Business Property coverage helps cover your store’s improvements and equipment from claims resulting from things like fire, theft, or other covered disasters. We recommend limits of at least $300,000.
Business Income coverage helps replace lost income so you can still pay your bills if unexpected events cause a suspension in your business operations due to a covered loss. We recommend limits of at least $300,000.
Employee Dishonesty coverage helps protect your business from financial losses due to dishonest or criminal acts of employees. We recommend limits of at least $25,000.
Liability Coverage
Commercial General Liability helps protect you in case of lawsuits and claims if someone gets hurt or sick or property is damaged. For example, if a customer slips and falls in your store, liability insurance helps cover the cost of a lawsuit and medical bills. The minimum required limit for this coverage is $1 million per claim (up to $2 million per year).
Hired & Non-owned Auto helps protect your business if an employee has an accident driving their own car for something work-related (like deliveries). Your store could be named in a lawsuit even if the employee has their own insurance. The minimum required limit for this coverage is $1 million.
Employment Practices Liability coverage helps protect you in case of lawsuits brought by employees dealing with wrongful termination, harassment, discrimination, etc. The minimum required limit for this coverage is $100,000.
Umbrella coverage extends the limits of your other liability coverages. For example, if you have an umbrella policy with a $1 million limit and a general liability policy with a limit of $1 million per claim, you effectively have a general liability limit of $2 million for each claim. The minimum required limit for this coverage is $1 million.
Term life insurance coverage for all owners in the amount of your original loan amount (assuming you have paid for your franchise with a business loan) is a recommended practice. This ensures that should any ownership member pass away before the business has been paid off, the term life insurance would then pay off the remaining loan balance for the remaining owners. Term life insurance is affordable and simple application/purchase process.
Workers’ Compensation & Employer Liability is sold separately and gives your employees benefits if they suffer a work-related injury or illness. Benefits include medical care, replacement of lost wages, disability benefits, etc. Your policy also protects you if an injured employee, or their family, sues your business. The minimum required limit for this coverage is $1 million.
Adequate Insurance Coverage with an insurance company that meets best practice standards is a prerequisite to opening your franchise.
Financial Strength Franchisees should be insured by insurance companies with an A.M. Best Financial Strength Rating of A- or better.
Proof of Coverage a Certificate of Insurance (provided by your insurance company) evidencing adequate coverage and limits, must be submitted to your franchisor before a store opens for business. A new Certificate of Insurance for all policy renewals must be submitted at least thirty days before the expiration of any policy.
Review Your Insurance Policies Regularly we recommend you consult with a qualified insurance agent annually to review your coverage limits and premium.
Gusto assets to consider
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