A temporary deductible franchise is a category of insurance in franchises. In the generally accepted understanding, the concept of a franchise refers to trade, provision of services, to the manufacturing sector and catering, to the hotel business, and the courier service of online stores. However, they also work with a franchise in the insurance of movable and immovable property, special equipment, including life insurance, cash bank deposits, and cash collection services for values, and a temporary deductible is one of the conditions of the insurance agreement. In the glossary of terms of the contract, the deductible refers to the part of the damage caused that is not paid by the insurer in the event of an insured event. A preliminary discussion between the signatories on the introduction of a deductible in the franchise agreement is carried out in advance before the conclusion of the contract. The presence of the prescribed clause assumes that the agreed fixed amount of loss, in absolute monetary terms or a proportional percentage of the amount of insurance or the amount of loss, the organization does not pay to the policyholder, and the insurer independently at its own expense, reimburses the property losses and damages incurred.
The amount of damage to the franchise is specified in the contract is reimbursed by the franchise insurer. A temporary franchise deductible is a condition under a temporary agreement, according to which the possible losses and damages of the policyholder are valid in a specific calendar period, in the period from the beginning of the due date to the end of the specified date of the temporary franchise. If the temporary insured event occurred earlier than the deadline agreed and established by the contract, the company will not pay property losses expressed in monetary form, cover, and return monetary compensation. In case of a temporary deductible, in which the period of occurrence of the insured event has expired, the temporary indemnity is not valid and is not paid. A temporary franchise deductible is the insurance business is a mutually beneficial, two-sided condition of the parties, it is useful and profitable, both for the insurer and not without benefit, beneficial and practical for the insurer. The temporary franchise insurer gets the opportunity not to pay damages to the client in case of minor damage, thereby optimizing the operating costs of the insurance organization and the workload in terms of the number of employees, saving on the wages of the franchiser’s company's personnel. Also, an insured event does not have to arise and you won’t have to use a deductible, the policyholder receives material benefits from the cost of the insurance policy, the larger the deductible, the cheaper the insurance, and vice versa.