Chances are, if you have ever purchased liability insurance for your pet-sitting business, you are aware of the 3 C's: Care, Custody, or Control. Care, Custody, or Control (CCC) is one of the primary coverage needs of all pet service providers, as it provides coverage for the pets and personal property while in your care. For this briefing, let's discuss CCC, where it comes from, what it does, and the importance of maintaining an adequate limit to protect your business. Before the mid-1990s, if you purchased liability insurance for your pet-sitting business, chances are you likely did not have any coverage for the pets or the client's personal property while in your care. That is because most all commercial general liability policies utilize the same coverage form (CG 00 01) which contains exclusion j, titled "Damage to Property". It excludes property you own, rent, or occupy (as this would be covered under a property form if you lease or own a facility, or a homeowners form if you work out of your home). It also excludes property you sell, give away or abandon, as well as property loaned to you. And right in the middle is the infamous pet sitter exclusion, exclusion "j.(4) personal property in the care, custody or control of the insured."
At first glance, you may ask why is this exclusion so important. The reason is twofold. First, pets are considered personal property under the laws of all states, so when you, the pet sitter, take care of a client's pet(s) and their owners are not around, that pet(s) is going to be considered personal property in your care, in your custody or your control. The second reason, a lot of professional pet sitters, and even some pet sitter insurers often overlook, is when your clients give you the key to their home and they leave town for a few days, a week, or longer. Now all of your client's personal property in their home is considered in your care, in your custody, or your control (while the client(s) is away).
A brand new pet sitter, and/or even some that have been in business for a few years, may have no idea that they could be held liable for damage to the contents of their client's homes.
So what does the commercial general liability policy form (CG 00 01) cover, if it does not cover pets and clients' personal property, how do I get coverage for pets and the client's personal property? Great questions! The commercial general liability policy covers you against bodily injury (such as dog bites to a 3rd party) and property damage (such as injuries to another pet not in your care, and/or if you were to only perform dog walking and do not have the client's personal property in your care, it would cover damage to clients property caused by your negligence). You wouldn't want insurance if it did not cover your client's pets and personal property, as this is the primary exposure of your business. Sotoo provide coverage for care, custody,y, or control, insurance companies now add additional endorsements (policy forms) to specifically cover pets and personal property and limit the amount they will pay. Under the NAPPS liability policy, care, custody, or control coverage is included via an endorsement titled "Property Damage Coverage Extension and Veterinary Expense Coverage". This endorsement covers both the pets in your care and the client's personal property in your care, custody, or control up to the limit you choose ($10,000 - $200,000) when you take out the policy. In addition, the endorsement also covers vet medical expenses regardless of fault up to the limit you choose.
Today there are a lot of insurers writing insurance coverage for pet sitters. Most of them will include the commercial general liability coverage form or similar form, and instead of changing or giving back coverage for personal property in your care, custody, or control as the NAPPS Liability policy does, they will offer a property or inland marine form titled Animal Bailee Coverage to cover pets in your care, and some will also include a Pet Groomers Professional Liability Form which covers liability arising out of or rendering or failure to render professional services in the course of pet sitting, boarding, grooming, etc. But when reading these forms carefully, they only apply to animals/pets in your care, custody, or control, and neither includes coverage for the client's contents/personal property. Some other insurers in the marketplace will provide some additional endorsements to cover the client's property on a limited basis, but typically not for more than a $10,000 limit. So regardless of who you are insured with, make sure you have coverage and an adequate limit for both pets and clients' personal property in your care.
Now let's take a look at some claims examples to illustrate what is covered under the Napps Liability policy, first in terms of injuries to pets, and then in terms of property damage to the client's contents in your care.
CCC claims to Pets:
- The cat in the insured's care was given the wrong medication and had to be hospitalized. Total paid $10,000.
- The dog in the pet sitter's care was running in the yard, stepped in a hole, and can no longer move their back legs. Total Paid $16,735.
- While on a walk, the dog slipped out of their collar and was struck by a vehicle, requiring multiple surgeries. Total Paid $22,634.
- The dog ingests a foreign object while on a hike and becomes very sick. Walker takes the dog to the vet and has multiple tests done followed by multiple surgeries. Total Paid $17,900.
CCC claims to Client's Personal Property:
- Pet Sitter used the client's toilet and left home. The client came home to find the toilet had overflowed leaving an inch of water throughout the home, and damaging rugs and contents, which had to be replaced. Total Paid $26,546.
- The sitter did not properly latch the puppy crate. Puppy got out and chewed up a sofa and throw rug. Total paid $6,478
- The sitter left the key under the mat for the next sitter. When the next sitter arrived she discovered the key was missing and the house had been burglarized. Total Paid $10,475.
- Pet Sitter set an aquarium light on the armchair, it melted and caused damage to the rug on the hardwood floor. Total Paid $11,692.
As you can see from these claims, $10,000 may not be enough to adequately cover care, custody, or control claims anymore. What is disturbing is that approximately 65% of all pet sitter/dog walker clients insured via Business Insurers of the Carolinas only choose a $10,000 CCC limit. And most other insurers offering insurance for pet sitters and dog walkers typically will not offer more than $15,000 in coverage for pet injuries, and only $1,000 or $2,500 for vet medical injuries (regardless of fault), which indicates that the vast majority of all pet sitters and dog walkers are underinsured for covering the pets in their care. In terms of the client's personal property, be sure to consider your client's furnishings and contents when selecting your limit. Can they be replaced for $10,000 if you or one of your sitters were to incur a large water damage or fire damage claim and destroy your client's contents?
Yes, it is a little more expensive to purchase a higher CCC limit, but when it comes to being insured properly, the cheapest insurance products on the market are not always what's best for your business. We have seen several claims over the last 18 months where pet sitters did not have a large enough CCC limit to cover the claims. In one recent case, the vet bills exceeded $25,000, and the sitter only carried a $10,000 limit. So again, please be sure to choose an adequate CCC limit to cover your business.