Becoming A Pet Sitter: Bonding And Insurance Explained

Pet sitting is a great business idea for animal lovers, but it comes with certain challenges and risks. One of the most costly risks is being held financially liable for injuries or damages that occur when an animal is under your care. This is where pet sitting insurance and bonding come in. They help protect you from financial losses and give your clients peace of mind. In this article, we will discuss what pet sitting insurance covers, why bonding is important, and how to get bonded and insured for pet sitting.

Understanding the difference between insurance and bonding

Both insurance and bonding are forms of financial guarantee, but they are not the same thing. Being bonded is more like credit, where the risk lies with the person or entity buying the bond, not the insurance company.

Insurance

Insurance is a contractual arrangement where an individual or entity, known as the policyholder, pays a premium to an insurance company in exchange for protection against financial losses or liabilities arising from specified risks. In the event of a covered loss, such as an accident, injury, property damage, or another unforeseen event, the insurance company compensates the policyholder or designated beneficiaries per the insurance policy's terms.

Insurance spreads and manages risk across a large pool of policyholders, enabling individuals and businesses to mitigate the financial impact of unexpected events and safeguard their assets, health, and livelihoods.

Bonding

A bond, or more specifically, a surety bond, is a legally binding agreement between three parties: the principal (the person or entity doing the work), the obligee (the person or entity requiring the work), and the surety (the company providing the bond). The bond guarantees that the principal will fulfil the terms of the contract. If they don't, the obligee can file a claim against the bond to recover their losses from the surety.

In summary

Insurance offers broader coverage against various risks, such as accidents, injuries, property damage, and liability claims. On the other hand, bonding assures clients or customers that a business will fulfil its contractual obligations and cover any financial losses resulting from dishonesty or misconduct.

Why bonding is important

Bonding is important as it protects your customers against any losses caused by the contractor (the sitter). Being bonded as a pet sitter means that your clients will be compensated in the event of theft or property damage. This includes theft by the pet sitter (business owner), which general liability insurance typically excludes.

Bonding requirements vary by state. Some states require bonding for registration or insurance, but even if it's optional where you are, it's still a good idea. Purchasing a pet-sitting bond is an excellent business practice as it helps assure potential clients that you're trustworthy and won't abuse your access to their home or pets.

If you have employees, you should also obtain a fidelity bond to protect yourself from any losses resulting from dishonest acts by your staff.

How to get bonded and insured

To get bonded and insured for pet sitting, you need to do your research. Ask fellow pet sitters which companies they use, or consult local insurance agents. Joining a professional pet sitting organisation like the National Association of Professional Pet Sitters (NAPPS) can give you access to tons of resources, including advice about insurance and bonding.

In addition to pet sitting business insurance, you need to look into bonding requirements in your geographical area. Many companies that offer pet sitting or dog walking insurance also provide bonding.

Bonding requirements vary by state. Some states require bonding before you can even register your business or purchase insurance. Even if it's optional in your state, you should still get bonded to protect yourself and assure potential clients that you're trustworthy.

• Fill out a free online application for a business service bond.
• Speak with a skilled bond agent and supply any supporting documents.
• Turn the bond in to the obligee.
• Once the bond is turned in to the obligee, you may begin taking care of animals.

When choosing an insurance provider, look for these two options:

General Liability Coverage with Care, Custody or Control (CCC) Coverage: This covers pets and property in your care, custody, or control.

The following providers offer Pet Sitting Insurance in the United States:

• Business Insurers of the Carolinas: They have provided coverage since 1992. You must be a member of NAPPS or PSI to sign with them.
• Pet Sitters Associates: They have provided coverage since 1998 and offer several policy options and benefits, including a Business Listing service.
• Kennel Pro: They offer three different insurance packages.
• Pet Care Insurance: They offer insurance and products for many different types of pet care professionals.

What does pet sitting insurance cover?

Pet sitting insurance covers a range of incidents that may occur while you are taking care of someone else's pet. The insurance covers you for any financial losses incurred due to accidents, injuries, or damages that occur while you are caring for a client's pet. This includes costly medical bills and legal expenses.

All pet sitting policies include general pet sitting liability insurance, which helps with the cost of legal claims against you from injuries or damages sustained by a third party during your business operations. This includes third-party bodily injury and property damage. For example, if a dog you are pet sitting bites a stranger, the insurance will cover the majority of the associated costs after the deductible up to your policy limit.

Pet sitting insurance also often includes animal bailee insurance, which provides coverage for the loss or destruction of animals in your care, custody, and control. This is important if you are concerned that pet owners will hold you liable for any injury to their pet while under your care.

Additionally, pet sitting insurance may cover veterinarian expense reimbursement, which covers vet bills for your client's pet while in your custody up to the policy limit. If your client already has pet health insurance, you may not need this feature.

Another common feature of pet sitting insurance is lost key liability coverage, which reimburses you for the cost of replacing or re-adjusting locks at your client's home if you lose their keys.

Some pet sitting insurance policies also include personal and advertising injury clauses, which cover claims arising from situations such as false arrest, malicious prosecution, wrongful eviction or entry, and oral or written publications that slander or libel a person or organization.

Tips for choosing the right insurance

Pet sitting insurance is a crucial part of protecting your business. It offers you and your team coverage in the event of any accidents, injuries, or damages that occur while caring for a client's pet. Without insurance, you could be liable for costly medical bills or legal expenses, putting you and your business at significant financial risk.

• General Liability Insurance and Bonding: Ensure that your policy includes both general liability insurance and bonding. General liability insurance will protect your business from accidental injuries, property damage, or claims that may cause reputational harm. Bonding, on the other hand, protects your company from allegations of theft or fraud.
• Customer Support: Choose an insurance provider that can answer your questions and offer assistance when needed. The team behind the product should be knowledgeable and accessible.
• Coverage Limits: Check the coverage limits to ensure they meet your needs. Consider the specific risks associated with your business and select a policy that provides sufficient coverage.
• Read the Fine Print: Carefully read the policy to understand any exclusions or limitations. Be aware of what is covered and what is not to avoid surprises later.
• Provider's Reputation and Customer Service: Consider the reputation and customer service of the insurance provider. Ask fellow pet sitters, colleagues, or other business owners about their experiences with the provider.
• Get Multiple Quotes: Obtain multiple quotes from different providers to compare prices and coverage options. This will help you find the best value for your money and ensure that you are getting the coverage you need.
• Additional Insurance Options: Depending on your business's needs, consider other types of insurance, such as Worker's Compensation, Commercial Auto Insurance, or Umbrella Policies, to fill in any gaps in your coverage.

Remember, the right insurance will give you peace of mind, protect your business, and demonstrate to prospective customers that you take the welfare of their pets and homes seriously.

Frequently asked questions