What are the standards for underwriters of policies providing required insurance coverage for a HydroDog business?

According to Hydrodog's 2025 Franchise Disclosure Document, franchisees must adhere to specific standards for insurance coverage. Hydrodog retains significant control over the insurance policies franchisees obtain. The franchisee is required to maintain various types of insurance coverage, and these policies must be issued by carriers that Hydrodog approves. The types of insurance coverage cannot be altered or reduced without Hydrodog's prior written approval.

Hydrodog also dictates the terms of the insurance policies. These terms include ensuring that the policies do not limit or reduce coverage for Hydrodog, extend indemnity to cover the franchisee's obligations under the franchise agreement, name Hydrodog and its affiliates as additional insureds, and include a waiver of the insurance company's right of subrogation against Hydrodog. The policies must also provide that coverage applies separately to each insured and that Hydrodog receives at least 30 days' prior written notice of any termination, expiration, cancellation, or material modification. Franchisees cannot reduce policy limits, restrict coverage, cancel, or alter the policies without Hydrodog's prior written consent.

Before the expiration of each insurance policy, franchisees must provide Hydrodog with a copy of the new, renewal, or replacement policy, along with evidence of premium payment. If a franchisee fails to maintain the required insurance coverage or provide satisfactory evidence of coverage and premium payments, Hydrodog reserves the right to obtain the necessary insurance coverage on the franchisee's behalf, at the franchisee's expense. Franchisees must cooperate with Hydrodog in obtaining insurance policies and must promptly sign all required forms. They must also allow any inspections of their HydroDog Business required to obtain or maintain the insurance and pay Hydrodog, on demand, any costs and premiums incurred in obtaining insurance on their behalf. The franchisee's obligation to maintain insurance coverage, or Hydrodog's maintenance of insurance on the franchisee's behalf, does not reduce or absolve the franchisee of any indemnification obligations described in the Agreement.

Hydrodog specifies the types, amounts, terms, and conditions of insurance coverage required for the HydroDog Business, including standards for underwriters of policies providing required insurance coverage. Hydrodog also outlines its protection and rights under such policies as an additional named insured, required or impermissible insurance contract provisions, assignment of policy rights to Hydrodog, periodic verification of insurance coverage that must be furnished to Hydrodog, Hydrodog's right to obtain insurance coverage for the HydroDog Business at the franchisee's expense if the franchisee fails to obtain required coverage, Hydrodog's right to defend claims, and similar matters relating to insured and uninsured claims.