Licensed, Bonded and Insured - Oh My!

To keep competitive in the petsitting industry, you may want to consider getting licensed, bonded and/or insured. True, this doesn't sound like the most glamorous topic, nor does it sound like an easy task to accomplish...

But, assuming you're not so overwhelmed that you already clicked the back button on your browser, Sittercity can help you sort through each accreditation, letting you know what's essential, what's not and what can help boost your business. Let's get to it!

THE BASICS

The first thing you'll need to do is understand what we mean when we say licensed, bonded and insured.

Licensing: A possible requirement
In the US, there is no specific petsitter license instituted by the government, since this industry is self-regulated. However, depending on what state/city you live in, laws may require you to obtain a general business license, which is most often a fee you pay to your city. In some cases, there are penalty fees for being caught without a license, and from what we understand, you'll feel more than a just tiny slap on the wrist if you're caught (hope you have deep pockets).

Bonding: Protects the customer against theft
Here's how bonding works: After your petsitting job, let's say the client returns and notices that a theft has taken place in his home. We know, you'd never dream of it. But, obviously, his first thought will go to you anyway. If you (or an employee of yours, if she was the one petsitting) are convicted, the bonding company makes immediate payment to the homeowner, and the guilty party - that would be you - repays the bonding company. Bonding is basically a security measure that helps customers feel safe and protected when they go out of town.

Liability Insurance: Protects the petsitter

Like any other liability insurance, petsitter liability insurance covers general liability, bodily injury and property damage. For example, if the dog you're walking suddenly pulls away from you and knocks someone over, causing bodily injury, you are covered for the accident. As for property damage, if Fido mistakenly thinks a random child's expensive remote-controlled airplane is just another version of a Frisbee, you're covered if he runs off with the gadget and tears it to pieces. A unique aspect of petsitters insurance is that many policies cover lost keys. So, rather than breaking your client's window and busting into the house criminal-style, your policy may cover the cost of changing the locks to give you access to the pet.

IS ANY OF THIS FOR YOU?

Licensing
You may be required to get a business license, you may not. Unfortunately, you don't get to be the deciding power in this (unless you decide to risk it and simply not get one, in which case, hey, you're on your own). Check out the SBA's statewide list of where to obtain a business license, locate your state and browse around to see what the local rules are.

For example, In Sittercity's own Chicago, if you click the link from the SBA list, you'll be taken to the Department of Business Affairs, where new applicants can then learn about the types of business licenses and exemptions, and operating a business out of your home. You'll even find business licensing forms, including one for sole proprietors. Pretty simple!

Bonding
If you have employees, you will definitely want to get bonded. After all, that new petsitter you just hired may seem like a trustworthy individual, but she may have hidden kleptomaniac tendencies that rival Wynona Ryder's. Typically, only petsitting businesses with more than one employee will need bonding, since it protects against employee theft. Although, some bonding companies will consider you, the owner, to be an "employee," which means they will cover you as well.

On the other hand, if you're the only one at your petsitting business, a bond is not a necessary protection. Why? Well, a bond only responds if you are actually charged and convicted of theft. So, as long as you trust yourself not to steal, chances are you'll never actually need the bond.

Even though a bond won't be useful for protection purposes, it does serve a valuable purpose in the eyes of your clients. If nothing else, getting bonded is a good marketing tool because it puts clients at ease and helps them feel protected while they are away. So it's totally your call as to whether you want to get bonded or not.

Insurance
Yes, it's for you. Definitely. Remember Murphy's Law? It's far too risky not to have insurance in any type of business these days. Think about it. You're entering a person's home and caring for his beloved pets, pets that are unpredictable by nature. This makes you very susceptible to lawsuits in today's litigation-happy society (sad, but true). Even when facing a lawsuit with absolutely no merit, you'll still have to cough up cash for your defense. So please do get petsitters insurance. Your wallet will thank you.

HOW TO GET LICENSED

First, you'll need a business name. Since you are starting your own small business and possibly using a business name other than your personal/legal name, you will have to register a DBA ("doing business as," also called a fictitious business name). Don't be scared, it's actually fairly simple. For example, if Jane Doe named her business Happy Paws Petsitting, that would technically be the fictitious business name because it doesn't contain her legal name anywhere in the title.

Still confused? Didn't bother reading that paragraph? Click here to take a short quiz to determine whether or not you need to fill out a DBA.

Once you've selected a business name, you'll have to figure out what's required of you in terms of licensing, based on your location. Again, check the SBA's statewide list of where to obtain a business license to see if your state requires you to have one (several do, for home-based businesses). Also, check with your local township offices too, since they may need to approve your application.

HOW TO GET BONDED AND INSURED

Most petsitters get insurance and/or bonding through a specialized petsitting organization, such as Pet Sitters International (PSI), National Association of Professional Pet Sitters (NAPPS) or PetSit LLC.

PSI: You must be a member of PSI to get access to their reasonably priced (group rate) liability insurance. PSI membership costs $129 for the first year, and $109 for each renewal year after that. As for the insurance, you'll be covered in the case of bodily injury, personal injury and property damage, plus lost key coverage and optional house sitting coverage. Additional benefits of PSI.

PSI uses Business Insurers of the Carolinas (click for more info about the insurance coverage). Petsitter business owners are actually covered in the bond.

NAPPS: NAPPS also offers discounted group rates for its members looking for liability insurance (NAPPS-certified petsitters receive an additional discount). Individual NAPPS membership is $95 for the first four individuals and $75 for each additional individual. Additional benefits of NAPPS. Like PSI, NAPPS also uses Business Insurers of the Carolinas for both bonding and insurance, so coverage is the same as above. More on insurance.

PetSit LLC: General liability insurance is actually included in your membership dues with this organization. Individual petsitters can expect to pay $164 per year for their membership and basic insurance costs. Questions and answers about what is covered in the insurance. PetSit doesn't do bonding exactly, but they do offer a special personal property endorsement that provides broader coverage and includes losses such as breakage, destruction, mysterious disappearance and loss caused by an employee theft from your customer's premises.