Its insurance Jim - but not as we know it

IT’S INSURANCE JIM-BUT NOT AS WE KNOW IT

Every business needs insurance-correct.

All types of insurance policies are the same-incorrect!

The insurance market has become a maze of different products presented in different forms and all claiming to be able to give the customer exactly what they need to see them through the uncertainties of business, travel and motoring etc. Take a look at the motor insurance market as an example of how the industry has changed.

Are you “confused.com”? Or will “Sheila’s wheels help you out? Does Churchill come to the rescue? Or perhaps you want to purchase car insurance from your local supermarket! There is no doubt that Sir Peter Wood when he started Direct Line created a whole new world as far as consumer choice and insurance were concerned.

 His revolution started over the phone. As we all know the World Wide Web has taken us even further - but where exactly is this road leading? There is no doubt that many consumers want to buy insurance online and so the large financial institutions have jumped in with both feet.

Does this then mean the death of the insurance broker? And what about Business Insurance? Will it go the same way as motor insurance and result in a corporate clean up?

Let’s apply this question to the franchising business community in particular.
Franchises are an effective way for small businesses to survive and indeed thrive in the midst of corporate domination and increasing globalisation. The ethos that we all understand is that “together we are stronger”. Thus when it comes to arranging insurance if individual franchisees are left to their own devices they may discover that they have entered into the business insurance maze alone and without any obvious help.

What should Franchisors do about this? My suggestion is that they should at least consider the possibility of a bespoke insurance scheme that will give their Franchisees the security of knowing that they have in place the right cover at a cost effective price.

I have spent some considerable time trying to address the question, how can the insurance industry best assist the franchise market?  If there is the prospect of lining-up a comprehensive insurance package that provides tangible benefits to both parties in a franchise agreement then it is surely worthy of further examination to the prudent franchisor.

Insurance products are moving forward at a fast pace to keep up with changes in legislation and cover should be regularly checked to make sure it is robust enough to give the fullest protection.  For example, the increasing vulnerability to personal litigation of company directors.  Insurance cover is available against such risks, but you need to be well advised to be fully aware of its existence.

All Franchise Agreements make some reference to Insurance but do not always give much detail as far as cover goes.  Our mission is to boldly go where no insurance broker has gone before……..to Franchisors and beyond!!

I have this strange notion that whilst you may not be able to change the laws of physics you can have some fun trying! So it’s insurance Jim but …………..