What AM Best Insurance Rating must the insurance company used by a Dq Treat licensee have?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
- B. Be written with a company rated no less than "A" by AM Best Insurance Rating;
Source: Item 17 — The following paragraph is added to the end of Item 17 of the Disclosure Document: (FDD pages 70–378)
What This Means (2025 FDD)
According to Dq Treat's 2025 Franchise Disclosure Document, the insurance company providing coverage to the franchisee must have a minimum rating of "A" by AM Best Insurance Rating. This requirement ensures that the insurance provider is financially stable and capable of covering potential claims.
This requirement is in place to protect both the franchisee and Dq Treat from potential financial losses due to unforeseen events. By mandating a minimum rating of "A", Dq Treat aims to mitigate the risk of the insurance company being unable to fulfill its obligations.
For a prospective Dq Treat franchisee, this means they will need to select an insurance provider that meets this specific rating criterion. Failure to do so could result in non-compliance with the franchise agreement and potential penalties. It is important for franchisees to verify the AM Best rating of their insurance provider and provide proof of coverage to Dq Treat as required.