What A.M. Best rating must insurance carriers have to be acceptable for Big Blue Swim School?
Big_Blue_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
You must maintain insurance coverage for the School at your own expense in the amounts, and covering the risks, we periodically specify. Your insurance carriers must be licensed to do business in the School's state and be rated A-, VII or higher by A.M. Best and Company, Inc. (or satisfy our other criteria). We periodically may increase the required coverage amounts and/or require different or additional insurance coverage at any time to reflect inflation, identification of new risks, changes in law or standards of liability, higher damage awards, or relevant changes in circumstances. Insurance policies must name us and our designated affiliates as additional insureds and give us 30 days' prior written notice of material modification, cancellation, or non-renewal and notice of any non-payment. You must send us a valid insurance certificate or duplicate insurance policy showing required coverage and payment of premiums.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 29–34)
What This Means (2025 FDD)
According to Big Blue Swim School's 2025 Franchise Disclosure Document, franchisees must maintain insurance coverage for their schools, and the insurance carriers must meet specific criteria. To be acceptable, the insurance carriers must be licensed to operate in the state where the Big Blue Swim School is located. Additionally, these carriers must have a minimum rating of A-, VII from A.M. Best and Company, Inc., or otherwise satisfy criteria set by Big Blue Swim School.
This requirement ensures that franchisees have reliable insurance coverage from reputable providers, protecting both the franchisee and Big Blue Swim School from potential liabilities. The A.M. Best rating is a widely recognized benchmark for assessing the financial strength and stability of insurance companies, indicating their ability to meet ongoing obligations to policyholders. By setting this standard, Big Blue Swim School aims to minimize risks associated with under-capitalized or unstable insurance carriers.
Big Blue Swim School also retains the right to modify the required coverage amounts or mandate different or additional insurance coverage to adapt to factors such as inflation, the emergence of new risks, changes in legal standards, or increased damage awards. Franchisees must also name Big Blue Swim School and its affiliates as additional insureds on their policies and provide 30 days' written notice for any material modifications, cancellations, or non-renewals, as well as notice of any non-payment. Franchisees are required to provide valid insurance certificates or duplicate policies as proof of coverage and premium payments.