What is the minimum required coverage amount for animal bailee insurance for a Hydrodog business?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
y other Indemnified Party be required to seek recovery from any insurer or other third party, or otherwise to mitigate our, their or your losses and expenses, in order to maintain and recover fully a claim against you. You agree that a failure to pursue such recovery or mitigate a loss will in no way reduce or alter the amounts we or another Indemnified Party may recover from you.
19. INSURANCE.
- 19.1 Types Required. Throughout the duration of this Agreement, you are required to maintain, at your own expense, the following types of insurance coverage under policies issued by carriers that we approve. These in
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, franchisees must maintain animal bailee insurance with a minimum coverage of $5,000. This insurance is one of several types the franchisee is required to carry throughout the duration of the Franchise Agreement. Hydrodog must approve the insurance carriers, and the coverage types cannot be altered or reduced without Hydrodog's prior written approval.
In addition to animal bailee coverage, Hydrodog franchisees must also maintain general liability insurance ($1,000,000/$2,000,000) with pet groomer professional liability coverage, commercial automobile insurance ($1,000,000) with uninsured motorist coverage, and workers' compensation insurance in the amounts required by applicable law. Hydrodog retains the right to periodically increase the required coverage amounts to reflect inflation, new risks, changes in law, or higher damage awards; however, they will not decrease them.
The insurance policies must also adhere to specific terms, including naming Hydrodog and its affiliates as additional insureds, containing a waiver of the insurance company's right of subrogation against Hydrodog, and providing Hydrodog with at least 30 days' prior written notice of any termination, expiration, cancellation, or material modification of the policy. Franchisees must furnish Hydrodog with copies of new, renewal, or replacement policies and evidence of premium payments before the expiration of each policy term. Failure to maintain the required insurance coverage allows Hydrodog to obtain coverage on the franchisee's behalf at the franchisee's expense.