Bonded Insurance
What Is Bonded Insurance?
“Bonded insurance” is a phrase people use when they mean having a bond, usually a business services bond or a fidelity bond. Ever heard the term “bonded and insured”? This is the bond they’re talking about.
A bond protects your client if one of your employees steals from them while on the job. The bond company reimburses the client for the loss, then they’ll usually ask you to repay them later.
Think of it like a security deposit for your client. It helps them trust you with their home or stuff because the bond is there to make things right if someone acts dishonestly.
Why It Matters to You
- Builds trust and wins jobs: Many clients want “bonded and insured” before they hand over keys, especially for sitters, dog walkers, and at-home groomers or trainers.
- Covers client losses from employee theft: The bond pays your client for their stolen money or property.
- Shows professionalism. Being bonded signals reliability, accountability, and credibility to new clients.
- Preserves client relationships. If there’s an incident, the bond helps you make it right for the best chance of keeping a client after a bad experience. Bonds show that your business has integrity, even if that employee didn’t.
What Bonded Insurance Covers
Here are a few real-world scenarios where an insurance bond might apply:
- A sitter’s employee pockets a client’s watch during a visit
- A groomer’s assistant takes cash from a client’s countertop
- A dog walker from your agency takes a client’s spare key and uses it later to steal from their home
In these scenarios, your bond can repay the client quickly (so you’re not scrambling to cover the cost out-of-pocket). Most bonds will require you to pay back the bond company later, though.
Pro tip: Getting bonded is usually quick and easy, but you have other options. Most bonds can be issued in a day, and this kind of coverage gives your business an edge when clients want reassurance.
For coverage similar to bonding (that you don’t have to pay back), see PCI’s Employee Dishonesty Insurance.
What a Bond Doesn’t Cover
A bond can come to the rescue in many scenarios, but it’s not designed to cover all damage or theft. A bond doesn’t cover:
- Accidents that damage a client’s property or injure someone (that’s General Liability)
- Theft by the business owner (bonds generally cover employees, not owners)
- Independent contractors, unless specifically included in the bond’s terms
- Pet injuries or loss (that’s usually Animal Bailee)
Pro tip: If you work solo, you likely don’t need a bond since you don’t have any employees.
Bond vs Insurance: What’s the Difference?
You probably already noticed that your business insurance covers many theft, damage, and loss scenarios. Here’s how a bond works together with insurance, and why being “bonded and insured” is so crucial.
Swipe →
| Bond (Business Services/Fidelity) | General Liability Insurance | Employee Dishonesty Insurance | |
|---|---|---|---|
|
Main purpose |
Protect client from employee theft |
Protect you from accidents that cause damage or injury to others |
Protect the client from employee theft |
|
Who gets paid first |
The client |
The injured person or organization |
The client |
|
Do you repay? |
Often yes (depending on the bond terms) |
No |
No (paid via insurance, so you skip the step of paying back a bond middleman) |
|
Covers business owner’s theft? |
No |
No |
No |
|
Covers accidental damage/injury? |
No |
No |
No |
|
Typical example |
Sitter’s employee steals jewelry |
Dog knocks someone over and injures them |
Walker’s employee steals cash |
Big Takeaway
Having a bond or employee dishonesty insurance doesn’t mean your staff is untrustworthy or even that clients expect something bad to happen. For many clients and pet professionals, it’s simply a standard business practice designed to make everyone feel comfortable with your care.
Keep Sniffing Around
- General Liability
- Employee Dishonesty
- Business Services Bond / Fidelity Bond
- Certificate of Insurance (COI)
- Additional Insured
- Animal Bailee
Kyle Jude | Program Manager
Kyle Jude is the Program Manager for PCI, where he helps design and maintain liability coverage specifically for pet professionals. With 10+ years of insurance industry experience, he works closely with carriers, underwriters, and compliance teams to ensure PCI coverage stays accurate, responsive, and relevant to real-world risks. At home, he puts that same expertise to use wrangling his four beloved dogs
Kyle Jude is the Program Manager for PCI, where he helps design and maintain liability coverage specifically for pet professionals. With 10+ years of insurance industry experience, he works closely with carriers, underwriters, and compliance teams to ensure PCI coverage stays accurate, responsive, and relevant to real-world risks. At home, he puts that same expertise to use wrangling his four beloved dogs