Franchisor liability coverage

jwarman · Post by **jwarman** » Thu Jan 10, 2008 6:12 am

A franchise attorney has asked this question, which was posed by one of his clients:
" I believe the type of claim he would be asking about insuring would be contract or statutory claims by unhappy franchisees, or claims by someone injured in some way, or fired/discriminated against, at a franchisee location who sues both the franchisee and franchisor"

My thoughts are that the franchisor's insurer would have to respond to any valid third party claim brought against the franchisor and provide a defense. The final decision on coverage would probably lie with the court. Of course, for "employment practices" claims to be covered, the franchisor would need to have an Employment Practices Liability Policy in pace

Does anyone else have another thought or approach?

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