Golf TEC and Homewatch CareGivers Join Growing List of Franchisors Investing in Litigation Insurance
Cherry Creek Insurance Serves Rising Number of Franchisors with Unique Form of Coverage
Denver, CO - Cherry Creek Insurance, one of the nation's top independent insurance agencies, announced today that two fast-growing national franchise companies, GolfTEC and Homewatch CareGivers, have joined an increasing list of franchisors to invest in Cherry Creek's franchisor litigation insurance - a rare form of insurance protection offered by only a handful of firms specializing in this niche coverage nationwide.
The coverage ultimately protects franchisors from a wide variety of lawsuits. In addition to paying covered claims, the policy covers legal defense costs related to the covered claims. Defense costs from one of these lawsuits can cost as much as the franchisor litigation insurance policy annual policy premium in just four to five months, said Scott Carlson, Cherry Creek's Director of Management Liability.
Franchise litigation insurance became a necessary business and risk management decision, as Homewatch CareGivers continues to grow both domestically and internationally according to Leann Reynolds, President of the 165-unit provider of customized in-home care. Reynolds learned about the topic of franchise litigation insurance at the IFA convention a few years ago, and decided that Cherry Creek Insurance could help her take the step to protect the company's assets from potential litigation matters in the future.
Trish Barron, Vice President of Legal Affairs for GolfTEC, a 140-unit national chain of golf instruction facilities that provide expert teaching for golfers of all skill levels, agrees that taking out a franchise litigation insurance policy is a necessary business decision. "As the company continues to grow, we really want to focus on running the business and day-to-day operations. Franchise litigation insurance helps to alleviate the worry of potential litigation and lets us focus on what we do best," she said.
GolfTEC and Homewatch CareGivers are just two of numerous franchise companies investing in comprehensive franchisor litigation insurance offered by Cherry Creek Insurance. Today they work with a wide variety of franchise groups including Maui Wowi, Bark Busters, Jungle Quest, Postal Annex, Massage Heights 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.
Cherry Creek Insurance Agency estimates that nearly 80 percent of franchisors are currently without franchisor litigation insurance. However, the agency sees that percentage shrinking as it continues to educate the franchise industry on the topic.
"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 to resolve the franchisee dispute," Carlson noted. "We can foresee a reduction in these types of misconceptions as an increasing number of franchisors, such as GolfTEC and Homewatch CareGivers, take proactive steps to implement franchisor litigation insurance. In doing so, they are minimizing their out of pocket litigation expenses, and protecting their overall profitability."
The total insurance and risk management solutions provided by Cherry Creek also protects individual franchise locations. 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.
Carlson works with each franchisor client to develop a total franchisor litigation insurance solution for the organization. In fact, 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 very comprehensive exclusive to IFA members," he said.
About Cherry Creek
Cherry Creek, founded in 1986, is an independent firm with a diverse group of international insurance carriers. As one of Colorado's top employers, Cherry Creek has built a highly successful insurance brokerage firm with an emphasis on relationships.
About GolfTEC
GolfTEC is revolutionizing golf instruction. Since its inception in 1995, GolfTEC has developed into a golf instruction powerhouse with over 925,000 golf lessons given across the country. GolfTEC's patented SEVA system integrates video, 3-D motion analysis, impact analysis and biofeedback technology in to each GolfTEC lesson with a PGA Professional. The company employs over 250 PGA Teaching Professionals and in addition to lessons offers some of the nation's best practice facilities and custom club fitting services. GolfTEC has over 130 improvement centers in the U.S. In October of 2003, GolfTEC began a Franchise Initiative to accelerate growth across the U.S. and now operates in dozens of markets nationwide.
About Homewatch CareGivers:Homewatch CareGivers is a leading international provider of in-home care services for people of all ages, including seniors, children, veterans, the chronically ill, and those recovering from medical procedures. Its caregivers are triple-screened and continually trained and supervised by nursing professionals to provide reliable, compassionate, and highly skilled services in companion, personal and comprehensive care. In-home care services are personalized for each client and those customized care plans are administered through an international network of 100 owners with 165 territories which includes 9 international owners with 18 international territories. Each office is locally owned and dedicated to ensuring quality of life for clients and peace of mind for their loved ones. Founded in 1980, Homewatch CareGivers is the fourth largest in-home care company in the US.
