If you are a pet sitting business owner you have liability exposure, and if you have employees, you have employee dishonesty exposures. (In other words, you are at risk of being held financially responsible for damage caused by your business.)
Most business owners have probably heard the phrase, “bonded and insured.” It sounds good, but you may be wondering what exactly it means.
First of all, what does it mean to be bonded and insured?
When a business advertises that they are insured, it usually means they have liability insurance.
A liability insurance policy protects a business owner in case they are liable for accidental damage or injury that they cause while performing their business operations. It protects against unintentional damage caused to a third party.
When businesses advertise that they are bonded, it usually means that they have purchased a bond to protect them in case of employee dishonesty. Employee dishonesty coverage, which can come in the form of employee dishonesty insurance or a bond, protects the business owner and their client against the cost of fraudulent or dishonest actions by the employee. All forms of employee dishonesty coverage do not cover both the actions and damage, so be sure to understand your individual coverage.
If I need Employee Dishonesty Coverage, Are There Better Options than a Bond?
Yes. Employee dishonesty coverage can be obtain through purchasing an employee dishonesty bond or employee dishonesty insurance, and, in most cases, they offer the same type of coverage. For example, our program, PCI, allows you to add employee dishonesty coverage to your liability policy without needing to purchase a separate bond.
Having the employee dishonesty coverage option available as part of a package simplifies the purchase process for pet sitters, dog walkers, pet groomers, and pet trainers.
Are There Disadvantages to Purchasing an Employee Dishonesty Bond?
Although an employee dishonesty bond and employee dishonesty insurance offer very similar coverage, they may differ in the functionality.
An employee dishonesty bond may:
- Check your credit when you submit your application to the bonding company
- Contain a conviction clause. This means that the employee would have to be convicted of their crime under a court of law before the bond would pay any claim relating to the crime.
- Require you to reimburse the bond company after the claim has been paid.
If you are a looking for pet care business insurance coverage and wondering whether you need to be both insured and bonded, you may want to consider adding employee dishonesty insurance to your current policy rather than purchasing a separate employee dishonesty bond. This could save you money now and in the future as you continue to build your pet care business.