Moreland Insurance has signed an agreement with Hiscox to jointly launch a new policy, aimed to develop a ‘comprehensive safety net' for franchisors.
Moreland director Maurice Logie said that the launch marks a significant step in creating a defence mechanism for franchisors, as reported by Insurance Age.
"Franchisees effectively buy a template of a business model which is underpinned by the franchise agreement and if a dispute arises with the franchisor about the agreement, the policy will cover the franchisor's legal expenses," Logie added.
Willis Commercial Network's Hamilton-based broker will provide the product to all franchisors across more than 20 business sectors and is estimated to be worth 12.4bn pounds to the UK economy.
Hiscox national schemes manager Lee Turner said: "The franchise sector in the UK is an important and healthy component of the UK economy, contributing significantly to both wealth and job creation."
"Franchisors are valuable entrepreneurs who are cascading their innovative skills and business expertise into the sector and this policy is designed to afford them the reassurance and confidence to continue to do so."
