HISCOX, the FTSE 250 insurer, has signed a deal with Scottish broker Moreland to launch a policy aimed at people who are franchising out their businesses.
The policy aims to grab the two firms a slice of Britain’s £12.4 billion franchising sector and is designed to protect franchisors if they are sued by their franchisees by covering their legal expenses.
Hamilton-based Moreland already has a strategic partnership with the British Franchise Association, whose members employ about 520,000 people in the UK, spread across some 37,000 franchised outlets.
Moreland director Maurice Logie said it was too early to tell how big a cash boost his firm could receive from the partnership, but franchising had generated “a six-figure premium income figure” for the firm in the past year.
Logie, who is also president of Lanarkshire Chamber of Commerce, said: “This product is a significant step in creating a defence mechanism for franchisors, who often have to oversee and regulate the activities of up to 40 franchisees.”
Lee Turner, national schemes manager at Hiscox, added: “The franchise sector is an important and healthy component of the UK economy, contributing significantly to both wealth and job creation.”
Logie said that franchisors demonstrate “good risk management” because they have to choose their franchisees carefully.
He added: “Hiscox has recognised this and has tailored its product accordingly.”
News of the deal with Moreland comes just months after Hiscox teamed up with Aberdeen-based Central Insurance to launch a “cover-all” policy for charities, which includes everything from property insurance through to the cancellation of fundraising events and protection for trustees.
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