Not necessarily.

Some real estate franchise groups arrange insurance across their network, while others require each franchisee to arrange its own cover.

Before relying on a franchise insurance arrangement, confirm:

• The franchisee entity is insured
• Relevant directors and employees are covered
• Relevant licence holders are covered
• All services are included
• All operating jurisdictions are included
• The Professional Indemnity limit meets applicable requirements
• Whether limits are shared across the network
• The excess
• Retroactive cover
• Claims notification procedures
• Other required insurance

Does a franchise agreement prove I am insured? #

No.

A franchise agreement requiring insurance does not necessarily mean the franchisor has arranged that insurance for the franchisee.

Likewise, a Certificate of Currency does not confirm that every:

• Entity
• Person
• Activity
• Liability
• Claim

is covered.

The franchise agreement, insurance schedule and policy wording should be considered together.

A separate policy may be required where the franchise arrangement does not provide the cover required by the franchisee.

Contact our team before relying on a franchise insurance arrangement or arranging duplicate cover.