Special Insurance Considerations for Hail Damage to Franchise Restaurants

Hail damage to a restaurant can cost thousands in lost revenue with each passing day. But when it comes to fixing broken windows and leaking roofs in franchise restaurants, there could be multiple policies available for the claim. Attorney Bill Voss takes a look at different insurance coverage approaches and why each can make a big difference in the amount you recover.

Several Coverage May Apply to Franchise Restaurants Damaged by Hail

Not only do franchise restaurant operators need basic coverage for property damage and liability, they often require additional endorsements from the franchiser. Multiple policies and coverage limits make these kinds of claims complicated, but if done correctly they can allow for maximum payment for commercial hail damage.

There are many different kinds of policies that could cover hail damage losses in these situations, including:

• Company insurance. Some franchisers directly select the insurance companies that provide policies to a franchise operator. Larger corporations may opt to protect their reputations by making certain coverage options mandatory, such as requiring replacement cost rather than actual cash value for franchise damage claims.
   
• Franchise endorsements. Restaurants continually change the design of their logos, equipment and interiors, and franchises must make these updates as part of their repairs. Franchise endorsements provide coverage for an owner to update their location to new corporate standards, such as installing a new sign if the old one is damaged in a hailstorm.
   
• Optional coverage. If a franchise operator selects his own insurance coverage, he must do so carefully. While bare-bones policies may offer cheaper payments, optional coverage (such as extra expense, lost business income, and umbrella coverage) can save the franchisee from total loss or even bankruptcy.

Whether you own one franchise restaurant or multiple locations, the Voss Law Firm can investigate the details of your claim and fight on your behalf. Simply fill out the contact form on this page today or order a free copy of our book, Commercial Property Owners Must Read This BEFORE Filing an Insurance Claim.