Pandemics. Demonstrations and social change. Elections. Murder hornets? Life is uncertain and each uncertainty brings its own set of emotions and consequences and as businessowners and franchisors, your job is to make sure your franchisees are ready. The better prepared they are on a day-to-day basis, the easier it should be to handle crises.
Attorneys are already warning of pending suits from customers and employees for unsafe conditions following COVID-19 and there could be dangerous conditions left after the social unrest and demonstrations. Most franchise manuals contain a suggested maintenance matrix for the major components of the unit, and now is the time for you to review it for completeness and to suggest that your franchisees go through it before reopening. Remember: the best insurance against loss and lawsuits starts with the operator, not the insurance policy. The policy backs up the actions and methods in place.
If your business or office has been closed for the better part of three months, it is time to take a look at everything from top to bottom. If it is in an area where there was rioting or looting, check for the less obvious damage. Sean Falk, from Hylant, the full-service insurance company, recommends you test all the major components first such as:
Sean Falk also recommends you insist on an insurance audit this year. Premiums are expected to rise from 5-40% to cover all the COVID-19 losses. Falk says, “Most policies require audits because the premiums are based on sales but are not always done. If you have suffered a loss of sales, demand the audit.” If your agent hasn’t suggested this, FranWise recommends you look for a new agent. They get paid for your renewals, and you want to be sure they are working for you, not the renewal fee.
Everything will remain uncertain for a while, but not stagnant. Help your franchisees stay protected by sharing these ideas and making this part of annual site inspections. Well functioning units help promote the brand.
To reach Sean Falk for additional information about insurance, email him at firstname.lastname@example.org.