Resource center for 7-Eleven® Franchisees

Outside of the coverages offered through NCIS, franchisees are required to carry Workers' Compensation, and in some states, Flood coverage. Both of these coverages can be obtained outside of the captive, but through Marsh, the program administrator.

Marsh and its affiliates are global leaders in providing insurance support services such as brokerage, consulting, and actuarial services. Specifically, in supporting NCIS, Inc., Marsh provides the following services:

• Assists in the placement of insurance with the fronting carrier through “Marsh USA LLC.” 
• Provides program administrative services surrounding program enrollment, premium billing, delivery of policies and certificates of insurance through “Marsh US Affinity.” 
• Supports the facilitation of claims administration with a third party claims administrator. 
• Manages the day to day operation of NCIS with respect to financial reporting, regulatory compliance, premium rating and allocation, audit coordination, and board meetings.

All Franchisees may be considered to serve on the Board of Directors of NCIS, Inc. Knowledge of insurance, finance and risk management is helpful. However, the Board of Director protocols are still being developed and will be shared with Franchisees upon completion.

It is necessary to actively enroll the first year yet in subsequent years your coverage will automatically renew with a notification sent to the Franchisee. The enrollment process allows a Franchisee to procure insurance and to become an owner of NCIS, Inc. In addition, the enrollment process allows Franchisees to review pertinent information needed to complete the procurement of insurance. Each Franchisee will execute a Shareholder Agreement during the initial enrollment period in connection with ownership of NCIS, Inc.

Marsh US Affinity, the administrator for the insurance program, is building an on-line enrollment web platform tailored to Franchisees. In the near term, all eligible franchisees will receive quotes directly from Marsh US Affinity via email to your individual @7-11 email addresses on file prior to your current policy expiration.

Marsh will begin to send quotes to franchises at the beginning of September 2023. Enrollment in the captive will be available October 1, 2023, and all franchises on the new agreement will be eligible to move their coverage after that date. Franchisees interested in renewing with NCIS prior to their expiration date should contact Marsh to begin the process to move their coverage.

Generally, no, as Marsh will be notified of such location changes via reporting from 7-Eleven® and process the necessary policy endorsements. However, changes such as adding a location or leaving a location will result in a premium adjustment based on the estimated exposures for the balance of the year.

No, your policy will automatically renew unless you notify Marsh your decision to cancel the policy.

Each Franchisee will continue to receive an individual Business Owners policy with a unique policy number.

Franchisees will receive certificates of insurance with their policy delivery following binding. For additional certificates needed, Franchisees can request a new certificate by emailing Marsh US Affinity at 7-Eleven@marsh.com, or by telephone at 855.546.5361.

Premium rates for a policy year are determined using Franchisee historical loss data and are calculated to collectively cover projected claim costs and allocated expenses for the policy year. To determine the amount of premium payable by a Franchisee, a premium rate is applied to each Franchisee’s actual inventory and revenue based upon such values for the past twelve months valued as of May each year.

Allocated expenses include the following:

• Administrative expense payable to the fronting insurer for providing coverage to Franchisees along with associated premium taxes. 
• Claims administration fees payable to a third-party claims administrator. 
• Brokerage fees paid to Marsh to negotiate the terms of the placement with the fronting carrier. 
• Operating expenses for NCIS including captive management fees, audit fees, actuarial fees, legal fees, and premium taxes.

For Franchisees who have 12-months of revenue/inventory data for their stores at May 2023, that data is applied for the next policy year (e.g., 2023-2024). Marsh will contact Franchisees who did not have 12 months of data for their store to collect anticipated revenue/inventor values.

Your annual premium, based on provided revenue and inventory from 7-Eleven®, will be provided on the quote document, and this is the premium amount you will pay to Marsh. This premium will be inclusive of all taxes and fees owed.

To simplify the remittance of premiums, 7-Eleven® will remit premiums to Marsh on your behalf and then allocate internally the premium expense to each Franchisee.

Marsh will provide a master invoice to 7-Eleven® Corporate, who will then apply your individual invoice amount to your account. The amount invoiced to you will be amortized over the policy effective period to account 169/832 for BOP and 165/820 for Workers' Compensation.

A mid-term premium adjustment will be completed for any Franchisee exiting the system before the end of the policy year. Any refunds owed based on the Franchisee’s cancellation date will be processed within 30 days of the Franchisee’s cancellation date.

Although the fronting carrier will be responsible for covering the expense of Franchisee claims, the third party claims administrator will facilitate the payment of claims to the insured. View this coverage roadmap for detailed information on procuring your insurance and reporting claims.