What specific coverage is required within the commercial automobile insurance 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 commercial automobile insurance with specific coverage details. The required coverage includes a minimum of $1,000,000 in coverage, along with uninsured motorist coverage specifically for the HydroDog vehicle. This insurance coverage is intended to protect both the franchisee and Hydrodog from potential liabilities arising from the use of the vehicle in the operation of the business.
In addition to the specific coverage amounts, Hydrodog requires that all insurance policies, with the exception of workers' compensation and commercial property liability policies, must name Hydrodog and its related entities as additional insured. This requirement extends to liability arising from the franchisee's premises, operations, products, and completed operations, necessitating an additional insured – grantor of franchise endorsement on the general liability policy.
Furthermore, Hydrodog mandates that all required insurance policies, excluding workers' compensation, 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 insurance companies with a policyholder rating of B plus (B+) or better. These stipulations ensure that franchisees obtain coverage from reputable and financially stable insurance providers. The specific insurance coverage requirements are subject to change and are detailed further in the Hydrodog manual, allowing Hydrodog to adapt its requirements as needed.