Insurance Age:

Scottish brokers Moreland Insurance has partnered with Hiscox to launch a new policy designed to create a ‘comprehensive safety net’ for franchisors.

According to Moreland, it follows a small number of high-profile cases where the business originators have found themselves threatened with litigation by franchisees.

Moreland director Maurice Logie described the launch as a “significant step in creating a defence mechanism for franchisors”.

He said: “”Franchisees effectively buy a template of a business model which is underpinned by the franchise agreement and if a dispute arises with the franchisor about the agreement, the policy will cover the franchisor’s legal expenses.”