FRANCHISE CLAUSE

franchise clause.Insurance. A provision in a casualty insurance policy stating that the insurer

will pay a claim only if it is more than a stated amount, and that the insured is responsible for all

damages if the claim is under that amount. • Unlike a deductible, which the insured always has to

pay, with a franchise clause, once the claim exceeds the stated amount, the insurer pays the entire

claim.[Blacks Law 8th]