“How an unlatched puppy gate turned in to $98,000 in damage” Care, Custody, and Control Coverage for the

Professional Pet Sitter

with David Pearsall, CIC,

CWCA

2011 sponsor

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General Liability InsuranceBasic Liability

• Protects business owners and operators against claims of bodily injury or property damage arising out of their negligence.

• Example: dog bite to a third party (bodily injury)

• Example: water damage to the clients ceilings/floors (property damage to “Real” property)

General Liability Insurance Care, Custody and Control (CCC)

Exclusion

CG 00 01 Exclusion j. (4)

“Property Damage” to:

-Personal property in the care, custody or control of the insured.

-This includes client’s pets and client’s contents in your care!!!

General Liability InsuranceProperty Damage Extension

Care, Custody, & Control (CCC) Coverage

• The “key ingredient” for insuring a pet sitter

• Provides coverage for the client’s pets (*including vet expenses) and personal property in your care, custody, & control (including while transporting in a vehicle/pet taxi, etc.)

• Limits begin at $10,000 per occurrence and can be written up to $200,000 per occurrence.

General Liability InsuranceCCC-*Veterinary Expense Coverage

• The PSI Liability policy pays claims regardless of negligence/fault for accidental injuries to pets while in your care, custody and control.

General Liability Insurance

Fact:

90% of all pet sitter claims turned in to Business Insurers of the Carolinas fall under care, custody and control (CCC)

1. CCC claims to the pet in your care, including vet medical expenses

2. CCC claims to the personal property in your care

• Two dogs in the sitter’s care got into a fight, one dog injured the other dog’s leg, which required surgery.

• Paid $4,481

CCC – Injury to the Pet

CCC – Injury to the Pet

Client’s Dog got away from the pet sitter and ran away. A few days later the dog returned home, but with a broken leg. Paid $13,339

• Sitter was playing with

dog outside in 100 degree heat when the dog suddenly collapsed. The dog suffered a heat stroke and had to have IV’s .

• Paid $2,495

CCC – Injury to the Pet

• Sitter was taking care of two cats. One was diabetic, one was not. Sitter gave the wrong cat insulin, causing an overdose, and failed to give insulin to the diabetic cat. Both cats were taken to the vet for treatment.

• Paid $2,294.

CCC – Injury to the Pet

CCC – Injury to the Pet

• Dog stepped on glass while on a walk with a sitter.Paid $1,674 *Vet Expense

• Please note that we have had numerous claims involving dogs stepping on foxtails, glass, tar, ice, snake bites etc, etc. while on walks!

• Two dogs ingested ibuprofen while in back seat of pet sitters car.

• Paid: $2,264.

Similar claims occur while on walks or in the clients backyard with dogs ingesting toys, acorns, rocks, trash, etc. which require veterinary treatment.

CCC – Injury to the Pet

CCC-Injury to the Pet

• Pet Sitter was driving dog to the park when dog

suddenly jumped out of the window. Dog suffered extensive injuries

Paid $14,224 *Vet Expense

CCC – Damage to Property

Pet sitter went into the closet to find a leash. When stepping out of closet, sitter stepped into a table, knocking over and breaking a vase. Paid $1,542

CCC – Damage to Property

Sitter was having a hard time getting dog back inside and was in a hurry. She finallygot dog in and shut the door,and neglected to put dog backin crate. Dog subsequentlychewed up sofa and otheritems.

Paid $6,575

CCC – Damage to Property

• At clients home, pet sitter failed to properly secure dog gate. Dogs got out and chewed carpet and furnishings.

Paid: $11,473

CCC – Damage to Property

• Sitter damaged rug while trying to clean up dog urine.

• Be sure to use proper cleaning solutions when cleaning up after pets!

Paid $1,656

Sitter flushed too much paper down the toilet and it overflowed after the sitter left the house. When sitter returned, there was extensive water damage to floor, ceiling, contents/equipment/furnishings below.Paid *$26,742

CCC – Damage to Property

*Please note this claim involved damage to “Real property” as well as “Personal property.”

Unlatched puppy gate leads to…

• John & Monica purchased PSI Liability Policy with $1,000,000 per occurrence limit, and chose CCC limit of $10,000 per occurrence/$25,000 aggregate.

• Neither questioned what was covered under the CCC limit.

Claim #1

• John neglected to latch puppy’s gate, puppy came out and chewed on several pieces of furniture, and soiled carpet in upstairs bedroom.

• Total damage to furnishings $13,000• Insurance Company paid $10,000 due to total

CCC limit purchased.• John & Monica paid remaining $3,000

Claim #2

• While cleaning up the dog’s waste, John placed paper towels in upstairs toilet, flushed and left the house. Monica came for a follow up visit and found a complete disaster! Ceiling under the upstairs bathroom had collapsed and there was extensive water damage to floor/ceiling/walls and all equipment/furnishings underneath.

Claim #2 (Continued)

• Water Damage to the physical structure of the home (ceiling/floors/walls) was completely covered under the $1,000,000 per occurrence basic liability limit. (“Real” property is not excluded under the basic liability limit). However, the damage to the computer equipment and furnishings was estimated at $31,000 (which falls under “Personal” property).

Claim #2 (Continued)

• Total damage to “Real” property was $54,000• Total damage to “Personal” property was $31,000• Total damage was estimated at $85,000

• Insurance Company paid $54,000 for “Real” property, $10,000 for “Personal” property under CCC for a total of $64,000

• John and Monica were on the hook for remaining $21,000

Conclusion

• For the 2 claims, Monica & John were out-of-pocket for a total of $24,000.

• Had they purchased $25,000 in CCC coverage, claim number #1 would have been paid in full, and they would have been out $6,000 for claim #2.

• Had they purchased $50,000 in CCC coverage, both claims would have been paid in full.

That’s all.Thank you for listening!

The End