What specific endorsement should the general liability policy for a Hydrodog franchise include?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
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 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, the general liability policy must include a specific endorsement. The policy should include an 'additional insured – grantor of franchise endorsement' related to liability arising from the franchisee's premises, operations, products, and completed operations. Additionally, Hydrodog and its related entities must be named as an additional insured in all insurance policies, except for workers' compensation and commercial property liability policies.
This requirement ensures that Hydrodog is protected from potential liabilities arising from the franchisee's business activities. By being named as an additional insured, Hydrodog can be directly covered under the franchisee's insurance policy, reducing the risk of financial losses due to lawsuits or claims. This is a common practice in franchising, as it helps to safeguard the franchisor's brand and reputation.
Furthermore, Hydrodog mandates that all required insurance policies, excluding workers' compensation, be written by insurance companies with a rating of A-VIII 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+ or better. Franchisees must adhere to these insurance coverage requirements, which are detailed in the Hydrodog manual and subject to change. Franchisees should confirm these requirements with Hydrodog to ensure compliance and avoid any potential breaches of the franchise agreement.