What Franchisees Should Ask When Choosing an Insurance Agent

My first lessons in insurance did not come from a textbook. They came from watching my mother build and serve an insurance agency for more than 20 years.

She became a trusted resource for the Vietnamese community in the United States, and through her work, I saw aspects of the insurance industry that most people never think about until they need them. Quoting. Renewals. Policy reminders. Carrier communication. Document requests. Follow-ups. Certificates. This quiet administrative work helps keep people protected, even when nobody is applauding it.

Indeed, most of the work by insurance agents is done quietly outside of clients’ view, and that’s the way it’s supposed to be. But franchise owners would do well to become better informed so they can be more intentional when choosing an insurance agent.

Franchise insurance needs

My mother used to remind me, “Insurance is built on trust, but trust also means keeping up with the way people live and do business. If your clients are moving faster, you cannot serve them with yesterday’s process.”

When I started managing the agency with Candy Tran, I continued following my mother’s lessons. The relationships, service and follow-through still mattered, but business owners’ needs were changing. They were demanding faster responses, easier access to documents, greater clarity and less back-and-forth.

Business owners’ needs became even clearer when I invested in a franchise and learned firsthand how one delay can affect everything else. A missing certificate can hold up a lease. A slow quote can delay an opening. Unclear requirements can result in inefficient back-and-forth between the owner, landlord, lender and franchisor.

Choosing an agent

These potential issues should inspire franchise owners to be deliberate and thorough in their research. Here are six questions to ask before choosing an insurance agent.

The first question a franchise owner should ask is simple: Does the agency understand how franchise businesses actually operate?

A franchise owner’s needs may differ from those of other business owners. The franchisee may need to satisfy franchisor requirements, lease requirements, state rules, workers’ compensation obligations, lender requests and sometimes multi-location needs.

A quick-service restaurant, tea and coffee shops, fitness studio, salon, retail shop and professional service franchise all may be franchise businesses, but their risks are different. The agency should know how to ask about the actual business, not just fill out a generic form.

Franchise owners should not assume one basic policy solves everything.

Depending on the business, the review may include general liability, property coverage, business interruption, workers’ compensation, cyber liability, commercial auto, umbrella coverage, professional liability or employment-related exposure. Not every business needs every type of coverage, but every owner should understand what is being considered and why.

The better question is not, “What is the cheapest policy?” The better question is, “What risks does this policy address, and what does it leave out?” A lower premium can become expensive if the policy does not satisfy a requirement or respond when there is a claim.

Some agencies have limited markets. Others can compare more options. More options do not automatically mean better coverage, but they can give a franchise owner a clearer view of pricing, limits, exclusions and carrier appetite.

This matters because not every carrier wants every type of franchise risk. A carrier that is comfortable with an office may not be as competitive for a food and beverage, salon, fitness studio or business with delivery exposure. The agency should be able to explain why one option is being recommended over another.

Digital tools and service

This is where digital tools matter.

According to J.D. Power’s 2025 U.S. Insurance Digital Experience Study, 47% of auto insurance policy buyers now purchase through digital channels. That study is not specific to commercial franchise insurance, but it shows a clear change in expectations: People are more comfortable handling insurance online when the process is clear and easy to use.

Franchise owners already use digital tools for banking, payroll, scheduling, document signing and daily operations. It is reasonable to expect insurance to become easier to manage, too.

A good agency should make it simple to submit information, access documents, request certificates, track renewals and communicate what is still missing. Digital does not have to mean impersonal. To me, it should mean fewer delays and fewer lost details.

I do not believe technology should replace licensed insurance advice.

Digital tools can organize information, send reminders, speed up document collection and make the process more convenient. AI can help with repetitive administrative work. But when a franchise agreement has specific requirements, when an owner has several locations or when coverage is unclear, a real person still needs to step in.

The best experience is not digital versus human. It is digital for efficiency and human for judgment.

Franchise growth and risk

The International Franchise Association’s 2026 Franchising Economic Outlook report projected 12,000 franchised U.S. businesses will launch this year, with total economic output of all franchises increasing 1.6% to top $921.4 billion by year’s end.

Growth is good, but growth also creates more exposure. More employees, customers, locations, vehicles, equipment, data and leases all create more things to manage.

If I were advising a franchise owner in choosing an insurance agent, I would not tell them to base their decision solely on price. I would tell them to look at experience, communication, carrier access, coverage knowledge, digital convenience and the ability to support growth.

The right agency will not just sell a policy. It will help a franchise owner understand what they are buying, why it matters and how to stay protected as the business grows.