ADVERTORIAL
Safety net M
Moreland joins forces with Hiscox to provide custom-built professional indemnity insurance for franchisors
oreland Insurance, one of Scotland’s biggest and most successful brokers, has teamed up with Hiscox, the international specialist insurer, to
introduce a new and exclusive professional indemnity insurance policy aimed specifically at franchisors.
The tailor-made product is backed by Hiscox – named the Best Small Business Insurer in 2009, 2010 and 2012 – and will be marketed by Moreland, which has a strategic partnership with the British Franchise Association. The new policy is designed to provide a comprehensive safety net for franchisors following a small number of high-profile cases in which the business originators have found themselves threatened with litigation by franchisees.
Maurice Logie, director of Moreland, recently announced: “This new product is a significant step in creating a defence mechanism for franchisors, who often have to oversee and regulate the activities of up to 30 or 40 franchisees.
“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 help to protect the franchisor in such circumstances.”
The new product, which has been designed in conjunction with Hiscox, will help consolidate business stability and confidence in franchising, a sector now estimated to be worth £12.4billion to the UK economy. Franchisors play a vital role, with nearly 950 franchise systems supporting 40,100 franchisee outlets which, in turn, employ an estimated 594,000 people. Encouragingly, the latest Natwest/bfa survey indicated that 91 per cent of franchise outlets are profitable. Moreland, a member of the Willis Commercial Network – one of the world’s largest and most progressive insurance intermediaries – will offer the product to the whole franchisor community, which operates
across more than 20 UK business sectors. Mr Logie, who is also Lanarkshire Chamber of Commerce president, said that the policy was aimed at franchisors in recognition of their integral role in overseeing the franchising structure, as the person with ultimate responsibility.
He said: “The policy is very keenly priced because the bfa promotes ethical franchising so, by definition, a bfa member is a better risk. Hiscox has recognised this and has tailored its product accordingly.”
“ A bfa member
is a better risk. Hiscox has recognised this and has tailored its product accordingly
Lee Turner, national schemes manager at Hiscox, which specialises in cover for the professional services sector, said: “The franchise sector in the UK is an important and healthy component of the UK economy, contributing significantly in 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 allow them to continue.” Maurice Logie added: “Franchising has always been of great interest to me. We have supported the industry for many years and as a bfa partner it is very gratifying to be able to provide practical, tailored and cost-effective products to the main players within the sector.” n
For more information contact Maurice Logie, director, Moreland Insurance Brokers, 117 Cadzow Street, Hamilton, South Lanarkshire, ML3 6JA or call 0845 1800 500. Alternatively visit
www.morelandinsurance.co.uk.
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