Franchise Liability Insurance

Are You Worried About Being Sued By Your Franchisees And Others? Finally, A Solution Just For You, The Franchisor!

How the Program Works for Canadian Franchise Disclosure and other Claims

Exclusive franchisor product in Canada! Finally, an insurance policy specifically designed for you, the franchisor! An increasingly volatile and litigious environment around lawsuits from third parties is always cause for concern for any business. A unique and growing issue for franchisors is litigation around claims for rescission.

  • Tailored made franchisor cover for rescission claims, the Arthur Wishart Act and other similar Provincial Disclosure Statutes

For more information, please contact franchise@insuranceportfolio.com or call the office.

Exclusive Franchisor Liability Program

Franchisor Claims Scenario

TRADITIONAL STRUCTURE

Potential Claims Franchisee (Plaintiff)
DD
  • Rescission Claim
  • Misrepresentation Claim
  • Failure to provide Franchising Services
  • Failure of Duty of Good Faith and Fair Dealing
  • Employment Practices Claim

Loss

E+O
Carrier A

Vicarious Liability Exclusion Breach of Contract Exclusion Named Services

Loss

D+O
Carrier B

Breach of Contract Exclusion Franchisee Exclusion

Problems: Potential denial or severe gaps of coverage due to exclusions, 2 claims adjusters, 2 deductibles, coverage allocation, inability to use own legal counsel.

FRANCHISING AMENDATORY PROGRAM

Potential Claims Franchisee (Plaintiff)
DD
  • Rescission Claim
  • Misrepresentation Claim
  • Failure to provide Franchising Services
  • Failure of Duty of Good Faith and Fair Dealing
  • Employment Practices Claim

IPI Franchisor Amendatory

E+O
(If Purchased)
D+O

Defence Costs, Indemnity, 1 Deductible, Reduced Premiums, Arthur Wishart Act and other similar Provincial disclosure statutes covered.

See Policy For Exact Terms, Conditions & Exclusions