Home and Senior Care Franchise Industry Report (2021)
We were able to provide an insurance insight to the Home and Senior Care Franchise Industry Report, see below for the insurance portion of the article. To read the whole report, click here.
Special Industry Consideration: Insurance and Licensing
For “extreme exposure” franchise industries, such as elder care, the insurance policies needed are typically very similar to the policies needed for all industries. However, “the limits can vary drastically and so can coverage or even exclusions for an extreme exposure,” says Doug Groves, founder of Program Insurance Group, a company that offers insurance products and services tailored for franchises.
“Depending on the exposure, a much higher umbrella limit might be required, or errors & omissions insurance could be crucial for the work or service offered,” he says. “It depends on where the risk is highest; ask yourself “What am I most likely to be sued for?” and ensure your limits and coverage are more than adequate. This is where a knowledgeable agent will advocate for you by helping you understand your special risk and the wording of your particular circumstances and needs.”
One of the advantages to aligning yourself with a franchise in the home and senior care industry is, in many cases, the franchise brand you choose already has a measure of familiarity with the rules and regulations that must be adhered to. Within the FDD for franchises, there will be an estimate for how much it will be to obtain your initial insurance and licensing.