Respected Firm on a Mission to Protect Franchise Systems from Litigation, Other Losses
April 21, 2008 // Franchising.com // Denver, CO – For the first time in the history of franchising, a well-known insurance agency is armed and ready to "watch the backs" of franchisors and franchisees.
With 80 percent of franchisors currently without franchise litigation insurance, Cherry Creek Insurance has taken the lead among just a handful of firms specializing in franchise insurance nationwide. The most recent success story out of Cherry Creek Insurance is the launch of a unique form of insurance protection offered by only a select few national insurance carriers – franchise litigation insurance. This rare form of insurance protection ultimately covers franchisors from franchisee lawsuits, such as territory issues, lease terms and training. In addition to paying any claims, the policy covers all legal defense costs related to the dispute.
With this move, Cherry Creek Insurance is well positioned as "the" protectors of franchise systems nationwide" and is quickly creating a niche for itself as the only agency to specialize in franchise litigation insurance and the individual insurance needs for every store with the franchise system.
"Most franchisors operate under the false belief think that franchisee lawsuits are covered by general liability insurance, and when a big dispute arises, they're forced to pay expensive legal fees firms to resolve the franchisee dispute. A defense from one of these lawsuits can cost as much as the franchise litigation insurance policy annual policy premium in just four to five months," said Scott Kennedy, President of Cherry Creek. "Cherry Creek Insurance is dedicated to being part of the IFA and the franchise industry. We understand how to meet the needs of an entire system and educate franchisors and individual franchisees."
The total insurance and risk management solutions provided by Cherry Creek guarantee that both sides – the franchisor and the franchisee – are properly protected. A Cherry Creek agent analyzes the insurance needs for the franchise group and each individual franchisee. Risk exposures can vary by region, volume, etc. The agent then selects the best fit from a diverse group of insurance carriers at the best price.
Cherry Creek's first franchise client was the Navis Logistics Network. Today they work with a wide variety of franchise groups including Maui Wowi, Bark Busters, Jungle Quest, Postal Annex and Supper Solutions. The company plans to triple its franchise division in 2008, as they are becoming the "go-to" agent nationally for franchise litigation insurance.
Scott Carlson, Cherry Creek's Director of Management Liability, works with franchisors to develop a total franchise litigation insurance solution for the organization. He has negotiated with several national and international insurance carriers to offer broadened coverage at reduced premiums to IFA members. "Cherry Creek Insurance's franchise litigation insurance policy is the most comprehensive available for franchisors and exclusive to IFA members," Carlson said.
Cherry Creek, founded in 1986, is an independent firm with a diverse stable of insurance carriers. As one of Colorado's top employers, Cherry Creek has built a highly successful insurance brokerage firm with an emphasis on relationships. For additional information, visit www.cherrycreekins.com