Question by csi fan: If you are a small business; starting to franchise all over what insurance company shold I go to in dif states?
I am a new business and we have under ten employees but we are starting to franchise like Mcdonalds where we could be sprouting up anywhere; what insurance company should I use since we will be in different state I want to have some kind of medical plan; our home base will probably be oklahoma but what do we do when we start having franchises start in different states; we will have under thirty people so i guess we are considered a small business; does anyone have any advice on what insurance company and what kind of plan i would go for and the cost to me for each employee; any advice would be appreciated
Best answer:
Answer by JustSaying
I don’t believe you understand what “Franchise” means. You are allowing another individual to use your business model and he will pay you monthly royalties for that right. Why would you need insurance? The franchisee will have to get their own insurance. Are you really meaning “Expansion”? Talk to who you have insurance with now and see what they are capable of covering.
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You could be talking about self-insurance here which happens when a group is large enough to do things a bit differently then the usual insurance route. This is something you should explore. This is a great opportunity for you to give some added value to your franchise people by providing a better then average insurance options for both their business and their employees.
You also might be in the position to put together an association policy. You approach your broker to see if they will put together a package for the different franchises. Each franchise can then access this special package that is written to your specific needs and usually at a very good price. The volume that will be achieved overall allows the insurance company to throw in some extras that often are not available on an individual basis.
You can do this for the Commercial General Liability (CGL) policy that would include the building, lease improvements, liability, contents, stock, to name just a few.
If you are interested in a group health plan then this can be done as well.
Talk to a broker that you trust and see if they are able to help you. If this is beyond what they can do then hopefully you will get a referral.
How exciting for you, congratulations!
Comment by Turners Tips — August 19, 2010 @ 11:15 am