What is the minimum policyholder rating allowed for insurance companies providing Workers' Compensation policies for Hydrodog franchisees?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
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 insurance policies from a supplier designated by us.
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 certain insurance coverages, including Workers' Compensation. Unlike other insurance policies, which must be written by companies with a rating of A-VIII or better, Workers' Compensation policies can be issued by insurance companies with a policyholder rating of B+ or better. This means Hydrodog franchisees have more flexibility in selecting an insurance provider for Workers' Compensation, potentially allowing them to choose a more affordable option.
It is important to note that Hydrodog retains the right to change these insurance requirements from time to time, as detailed in the Manual. Therefore, prospective franchisees should confirm the current insurance requirements with Hydrodog before making any commitments. Additionally, Hydrodog has the right to require franchisees to obtain insurance from a supplier designated by them, which could limit the franchisee's choice of insurance providers.
While the FDD specifies the minimum acceptable rating for Workers' Compensation insurance providers, it also states that insurance coverage requirements are more specifically set forth in the Manual and are subject to change. This highlights the importance of franchisees staying informed about any updates to these requirements. Franchisees should also be aware that Hydrodog requires proof of coverage within 10 business days of their request, in the form of a certificate of insurance or other satisfactory evidence.