Franchise businesses face many risks — physical damage to property, liability for customer injuries, employee injuries, cyber attacks and more. While insurance exists to protect your business against the costs of these types of incidents, your business can also do a lot to help prevent them in the first place. These four simple risk management plans for franchises are a good place to start.

The risk management plans franchises need most typically include a general risk management plan, a cyber risk plan, a severe weather plan and a safe driving plan. See each plan summary below for more information.

General Risk Management Plan

A successful risk management plan should be built proactively ahead of potential risks, so your business isn’t caught off guard by the unexpected. Make sure the plan you implement includes the following elements for best results:

  • Selection of key personnel: Remember proper role placement is key. Make sure your franchise assigns the most qualified person for each role.
  • Safety rules and procedures: Develop general and specific rules and implement the guidelines that employees will need to follow.
  • Workforce training: Implement a program to provide initial and ongoing training for all employees on equipment use, company rules, safety procedures and more.
  • Safety inspections: Establish procedures to maintain franchise safety. Check regularly for any unsafe conditions or operating procedures.
  • Emergency preparedness: Designate procedures to follow for first-aid, treatment of serious injuries, building fires, workplace violence and natural disasters.
  • Engagement and motivation: Keep employees engaged in the franchise’s risk management efforts. Establish a safety committee or incentive program and create posters, handouts and more.
  • Accident reporting, investigation and analysis: Create a system to ensure all accidents and injuries are reported immediately, promptly investigated and analyzed so that corrective actions can be taken.

Cyber Risk Plan

Cyber attacks are now a common threat for small businesses, and the lack of a cyber risk plan increases the risk to your data records and may worsen the outcome if you are hacked. Your plan should:

  1. Assess the cyber risks your business faces. Consider the likelihood and severity of threats, focusing on more than just the worst-case scenarios.
  2. Identify your vulnerabilities. Look at what is at stake in the event of an attack, such as customer records and financial details or systems such as daily operations and communications channels.
  3. Plan for detection. Determine how your business will detect a hack, data breach or other cyber incident, whether in-house automated security systems or outsourcing monitoring to a security firm.
  4. Define normal operations. Define when it is appropriate to raise the alarm that a cyber incident may have occurred.
  5. Assemble a team that will respond in the event of a cyber attack, including any IT team members, key stakeholders and outside experts such as communications, legal and data forensics experts and your insurer.
  6. Note assets and resources. Take inventory of your cyber assets, such as backups, firewalls, log systems and software.
  7. Plan a cyber response. Decide how your business will investigate attacks, contain threats and recover from a hack.
  8. Prepare communication templates. A cyber incident often requires notification for affected customers and careful public relations management. Consider preparing these communications now so they can be used quickly, if needed.
  9. Create an event log. Use a cyber security event log to track the discovery of a hack, the actions taken and other technical details.
  10. Stay alert for threats. Practice going through your plan to ensure you’re ready and update it when needed.

Severe Weather Plan

Severe weather can happen anywhere at any time of year, so it’s important to create a plan for any weather events that might come your way. Here are seven steps you can take to help prepare for a severe weather event:

  1. Set up an emergency action plan. Include an evacuation policy, emergency escape procedures and route assignments, important telephone numbers, shutdown procedures and worker roles in an emergency.
  2. Ensure all employee contact numbers are current. Make sure you know how to reach employees so that everyone can be accounted for in an emergency.
  3. Designate a severe weather shelter. Notify staff of its location and post signage for customers. If your building does not have a storm shelter, locate one nearby.
  4. Implement a communication system. Communications are important for notifying employees of severe weather so they can evacuate, seek shelter or take other action.
  5. Store important documentation in a secure location. Safeguard accounting records, legal documents, employee emergency contact lists and other essential records.
  6. Compile a kit to be taken into the shelter. Make sure to include items like flashlights, emergency blankets, a first aid kit, water, snacks and a battery-powered radio.
  7. Hold training sessions and practice emergency drills. Make sure to practice your plan with staff to ensure everyone understands the emergency process.

Safe Driving Plan

Do you have employees who drive on behalf of your business? Whether they use franchise-owned vehicles or their own, it is important to implement safety policies to reduce workplace injuries and workers’ compensation claims, protect your business’s property and financial assets and reduce the risk of a liability lawsuit. In your franchise’s safe driving plan, be sure to:

  • Conduct driver screening and record checks. Minimize risk by screening out drivers with a history of DUIs, aggressive driving or other issues.
  • Consider implementing telematics. Further reduce distracted driving by providing trip navigation aids such as dash-mounted GPS and hands-free devices.
  • Require driver agreements. Require drivers to commit to safe driving. It helps set expectations, increase awareness and positively influence behavior.
  • Offer safe driving rewards and incentives. Recognize employees who are safe drivers with prizes and special privileges for reaching safety goals.
  • Report and investigate any traffic incidents. Study what incidents are occurring so that similar situations can be avoided in the future.
  • Reexamine your plan regularly. Ensure it meets industry and government highway standards and complies with all laws, rules and regulations.

Risk Management for Your PuroClean Franchise

As a PuroClean franchise owner, you have a big responsibility to protect your employees, customers and business from common risks. Luckily, Lockton Affinity is here to help.

The PuroClean Insurance Program offers tailored insurance coverage to protect against the risks of operating a PuroClean franchise.

Available policies include General Liability, Pollution Liability, Property, Workers’ Compensation, Commercial Auto, Cyber Liability and more.

Contact our dedicated team today to learn more about options to protect your business.