What is the general liability insurance amount required for a HydroDog franchise?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
r standards and specifications.
Insurance
You will be required to procure and maintain insurance in the amounts we prescribe. You agree to provide us with proof of coverage within 10 business days of our request, in the form of a certificate of insurance or other evidence satisfactory to us.
Currently we require the following insurance: general liability ($1,000,000/$2,000,000) with pet groomer professional liability coverage, animal bailee ($5,000), commercial automobile ($1,000,000) with uninsured motorist coverage (HydroDog Vehicle) and Worker's Compensation where necessary.
All insurance policies, except your workers compensation and commercial property liability policies, must contain, or be endorsed to contain, a provision naming us and our related entities as an additional insured. Specifically, with respect to liability arising from your premises, operations, products, and completed operations, the general liability policy should include an additional insured – grantor of franchise endorsement.
All required insurance policies, except for your Workers' Compensation policy, must be written by insurance companies with a rating of A-VIII (eight) or better in the most recent A.M. Best's Insurance Report (or other comparable publication we specify). Workers' Compensation policies can be issued by insurance companies with a policyholder rating of B plus (B+) or better. Insurance coverage requirements are more specifically set forth in the Manual and are subject to change from time to time. We may require that you obtain all or a portion of your insura
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 18–21)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, franchisees are required to maintain specific insurance coverage. The general liability insurance requirement is $1,000,000 per occurrence and $2,000,000 in aggregate. This coverage must also include pet groomer professional liability coverage and animal bailee coverage of $5,000. Additionally, franchisees must carry commercial automobile insurance of $1,000,000 with uninsured motorist coverage for the Hydrodog vehicle, as well as Worker's Compensation where necessary.
Hydrodog also mandates that all insurance policies, with the exception of workers' compensation and commercial property liability, must include a provision naming Hydrodog and its related entities as additional insured. Specifically, the general liability policy should include an additional insured – grantor of franchise endorsement, covering liability arising from the franchisee's premises, operations, products, and completed operations.
Furthermore, Hydrodog specifies that all required insurance policies, except for Workers' Compensation, must be written by insurance companies with a rating of A-VIII (eight) or better in the most recent A.M. Best's Insurance Report. Workers' Compensation policies can be issued by companies with a policyholder rating of B plus (B+) or better. These insurance coverage requirements are subject to change and are detailed further in the Hydrodog manual. Hydrodog also retains the right to require franchisees to obtain insurance policies from a supplier designated by them.