As most of you know, we are required by our insurance company to submit renewal applications every year. Often we receive questions regarding the various coverage options/endorsements on the application.We have had many a sitter contact our office after a claim and state they were confused as to whether or not they needed a particular coverage, and can't understand why their claim is being denied. Therefore, to give all members a better understanding of the coverage options now offered under the PCA Liability policy, I would like to take this opportunity to go through each coverage option in detail, and discuss whether you need it for your individual business.
Mandatory: Care, Custody, and Control
By now, even if you are new to the business, you likely know that the Care, Custody or Control option provides coverage for the pets in your care. Please note pets are covered under this form, (up to the limit you choose when you take out the policy, $10,000 - $200,000), wherever you go with them, including in your vehicle, to the park, to the vet, etc. The only place pets are not covered under this form is when they are taken to your personal residence, your employee's personal residence, and/or your independent contractor's or volunteer's personal residence. You would need a separate endorsement to cover this exposure, which I'll detail ahead.
What some members also fail to realize is that the Care, Custody or Control endorsement covers your client's personal property while in your care. For example, if you are given the keys to a client's home, while they are away for any period of time, the home and its contents are in your Care, Custody or Control. The home is covered as real property under the coverage form, and you have $1,000,000 to cover the physical structure. But unfortunately the client's contents/personal property are excluded unless you have this mandated endorsement. Examples include: if you were to forget to crate the teething puppy and the puppy were to chew up the furnishings in the home, or if you were to leave a heat lamp on the table and cause fire damage to the furnishings in the home, or if you were to cause water damage that subsequently ruined the furnishings. All of these scenarios have ocurred over the years, and unfortunately not all have been covered 100%, due to the limit the pet sitter chose when they took out the policy. Under the CCC form, you have to choose a limit from $10,000 up to $200,000. I recommend considering the clients' homes you are sitting for, and the number of pets in the home, when determining the appropriate limit for your business.
Optional: Coverage for Pet Grooming
Is it Pet Sitting or is it Pet Grooming? This is a question we hear from many of our insureds. Under the PCA Liability policy, the Pet Grooming optional endorsement should be stongly considered if you are cutting or styling hair and/or clipping nails. When this coverage is elected, the Pet Groomers Professional Liability form is attached, which provides coverage for wrongful acts/errors or omissions caused by the rendering or failure to render pet grooming professional services. You do not need to add Pet Grooming coverage if you are simply brushing or bathing the pets in your care, as this is considered routine and contemplated under pet sitting.
Optional: Coverage for In Your Home Pet Care
If you, your employees, volunteers, or independent contractors are caring for client's pets in your personal residences for any reason, then you will need the In Your Home Pet Care optional endorsement. If purchased and included on your certificate, this endorsement extends your care, custody or control coverage to cover all personal residences, including your home, and the homes of your employees, independent contractors, and volunteers. It provides coverage for caring for pets during the day (daycare) or boarding overnight. Please note this endorsement covers the client's pets only. It does not cover your personal pets (you will need pet health insurance to cover your personal pets) or your personal property (contents of your home) if damaged by the client's pets.
Optional: Coverage for Housesitting
Do you take care of clients' homes when there are no pets in the household? Do you pick up mail, water plants, turn on and off lights/alarms or other housesitting services when no pets are in the home? If so, you need the Housesitting optional endorsement. This coverage option was created after our insurance carrier denied a number of claims where damage occurred at the client's home, but the client did not have any pets in the home. The PCA Liability policy is designed for pet sitters, not housesitters, so we limit the amount of housesitting to no more than 45% of your annual receipts. If you are performing housesitting services only and perform no pet sitting, or if you are running a concierge service, cleaning service, or other service outside of pet sitting/dog walking operations, you do not qualify for PCA Liability policy, and will need to look elsewhere for coverage.
Optional: Coverage for Pet Training
Do you offer pet obedience training as an optional service in your pet sitting business? This coverage option is designed to cover your liability arising out of training. It covers general liability up to $1,000,000 limit, and the pets in your training classes up to your care, custody or control limit, whether teaching one on one, or group classes. It does not cover any training for protection, fighting, or law enforcement work. It also includes $25,000 in coverage for professional liability arising out of any errors or ommissions from your training classes.
Optional: Coverage for Non-Owned Auto
The Non-Owned Auto coverage option covers your business for claims arising out of vehicles (not owned by you) driven on behalf of your business. For example, if your employee or IC is driving their personal auto on behalf of your business and they are in an at-fault accident while working for your business. Examples include running into a client's home or into another vehicle or pedestrian while en route to your client's home(s). Please note that your employee's/IC's personal insurance will always be primary and pay first until their limit of insurance is exhausted. However, your business can also be brought into a suit, and this coverage form will defend your business and pay in excess of your employee's/IC's personal auto insurance. The limit of liability for this coverage is $100,000.
Optional: Dishonesty Bond Coverage
Dishonesty Bond coverage protects you and your customers from loss as a result of theft committed by you or your employees. The employee theft bond coverage includes these features:
- The definition of employee includes all owners and officers, full and part-time employees, independent contractors, and volunteers.
- You are covered up to the policy limit of liability for each loss occurrence. There is no aggregate limit of liability.
The bond will apply only after establishment of proof that the accused party has, in fact, committed a criminal act. After payment of the claim to the client up to the limits of the Bond, the insurance company will seek restitution from the guilty party. To tell a client that you are bonded demonstrates the confidence you have in your company and your staff. Many business owners who have no staff also purchase a bond because the credential assists the client in feeling more comfortable allowing the pet sitter in their home to provide care for the pets.
I hope you found this guide to be helpful. If you have any questions about your current policy or are thinking of applying for coverage, please don't hesitate to reach out to us. Simply call us at 800-962-4611!