Unique Insurance Product Targets Franchisees

March 28 - CIB Insurance has highlighted a problem facing many businesses in South Africa that operate on a franchise business model.

Almost half a million South Africans are employed by franchisees, which means that those who work for companies that don't have suitable insurance cover could be facing problems.

The director of CIB Insurance Solutions, Jonjon Smit, said: "Franchises are a rapidly developing business model and are perfectly suited to the entrepreneurial spirit in South Africa."

"However, while this sector is expected to continue to experience strong growth over the next few years, our research indicates that only between 20% and 30% have specific franchising insurance cover," he said.

CIB Insurance has created a unique insurance that is designed to give franchises peace of mind should they need to make a claim.

Smit said that the insurance product had been designed to "cater for certain key benefits that a normal commercial policy would not cover, at a extremely competitive pricing for this niche market."

The product will cover, for example, the deterioration of stock, as well as franchise-specific liability cover.

Smit said that these are major risks that have the potential to seriously derail an emerging franchise if there is not enough cover in place.

Naturally, the importance of the broker was stressed by CIB Insurance Solutions. "Advice is paramount when insuring a business," said Smit.