The MPL Minute #9

Delivering thoughtful solutions through clear exposure understanding and disciplined underwriting.

This issue of the MPL Minute features a hypothetical—but highly realistic—case study to illustrate how the Miscellaneous Professional Liability (MPL) team at Westfield Specialty uses creative, tailored solutions to support clients with complex professional exposures. These scenarios reflect the kinds of challenges our MPL team helps solve every day.

Understanding Franchisor Exposure Beyond the Storefront

A broker brought forward a national food service franchisor with more than 300 locations across the United States. The insured does not own or operate any locations directly. Instead, the franchisor provides system wide support, guidance, and standards across its franchise network.

Services included marketing and training programs, operational manuals, supply chain guidance, site selection input, and ongoing business coaching. While these activities are advisory in nature, they create Professional Liability exposure tied to systems and guidance rather than day to day operations.

The broker needed coverage that addressed the franchisor’s E and O exposure, along with the risk of being named in lawsuits simply because a franchisee was involved.

The Challenge Was Fit, Not Exposure

Standard MPL forms often struggle to reflect how franchisors actually operate. Franchisors do not control daily operations, yet they are routinely pulled into litigation alongside franchisees.

Many underwriting approaches either push franchisors toward General Liability structures or avoid the exposure altogether, leaving brokers without a clear or defensible solution.

Our Approach

Westfield Specialty partnered with the broker to build MPL coverage aligned to the franchisor’s advisory role.

Using our Franchising Professional Services endorsement, we clearly defined covered services, including:

Franchisee training and ongoing support
Marketing and advertising assistance
Operating manuals and system guidance
Supply chain and vendor support
Site selection and business development input

To address vicarious liability defense exposure, a claim expense sublimit was added to provide defense cost protection when the franchisor was named due to franchisee actions, without converting the MPL policy into a GL replacement. Clear boundaries ensured coverage remained focused on professional services only.

The Result

The franchisor secured coverage that reflects advisory and systems-based E&O exposure, a practical response to vicarious liability defense costs, and clear separation between MPL and GL responsibilities.

Most importantly, the broker had a solution they could confidently explain and defend.

Why It Matters

Franchisor risk does not fit neatly into traditional MPL programs. Our franchisor specific endorsement is designed around how franchisors actually operate, delivering focused protection where it matters most.

Connect with the MPL Team

Whether you have a complex professional exposure to discuss, need guidance on structuring MPL coverage, or simply want to learn more about our appetite, Dan Mogelnicki, SVP, MPL Product Leader and his team are here to help.

Dan Mogelnicki
SVP, MPL Product Leader
Westfield Specialty
631.496.6641
danielmogelnicki@westfieldgrp.com

Northeast

Soraya Penix Emma Andersen

Underwriter Underwriter

317.767.4582 212.814.4792

sorayapenix@westfieldgrp.com emmaandersen@westfieldgrp.com

Southeast

Joseph Kloc Mackenzie Walsh

AVP, Senior Underwriter Underwriter

470.650.8186 404.971.2264

josephkloc@westfieldgrp.com mackenziewalsh@westfieldgrp.com

Central