What A.M. Best Company rating is required for Kidokinetics insurance policies?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee shall procure, prior to the commencement of any operations under this Agreement, and maintain in full force and effect during the term of this Agreement at Franchisee's sole cost and expense and to Franchisor's sole satisfaction, insurance policies rated A or better with A.M. Best Company, protecting Franchisee and Franchisor, and naming Franchisor, its officers, directors, partners, owners, employees and affiliates as additional insureds, with at least the following coverage and limits (except as additional coverage and higher policy limits may reasonably be specified from time to time by Franchisor in the Franchise Operations Manual or otherwise in writing):
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, franchisees must secure insurance policies with a rating of A or better from A.M. Best Company. This requirement ensures that the insurance provider has a strong financial standing and is likely to meet its claims obligations.
Kidokinetics mandates this insurance coverage to protect both the franchisee and the franchisor from potential liabilities and financial losses. The insurance policies must name Kidokinetics, including its officers, directors, partners, owners, employees, and affiliates, as additional insureds, except for workers' compensation insurance. This protects Kidokinetics from vicarious liability for the franchisee's actions.
It is important to note that Kidokinetics retains the right to increase the minimum insurance requirements or add new types of insurance coverage as deemed necessary. Franchisees are responsible for providing proof of coverage that meets these updated requirements within 30 days of notification. Failing to maintain the required insurance can result in Kidokinetics procuring the insurance on behalf of the franchisee and charging the franchisee for the cost, plus an additional 20% administrative fee.