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What does it mean to be licensed, bonded, and insured?
If you have a small "business" like if you pet sit or something, what does it mean to be licensed, bonded, and insured?
What are the benefits of this?
Licensed, means some state agency has given you a license. Even a driver's license. So you have at least, a driver's license. Bonded, means someone has sold you a bond. There are HUNDREDS of different bond types, and what exactly it means, depends on the type of BOND you bought. Bonds are NOT transferrable from one client to another, so for most practical purposes, if there's no bond in your hands, the person is not bonded for YOU.
Insured, means you bought some kind of insurance. For a pet sitter, maybe it means CAR insurance, so they can drive to your house. Maybe it means LIABILITY insurance, maybe it means workers comp, in case the pet sitter employee gets bitten by your dog.
You will have to ASK the pet sitting business, EXACTLY which license, what kind of bond, and what kind of insurance they carry.
Pet sitting for example is not an business that has to be licensed - but if you offer this service - the public is owned some assurance that you are not a felon - will steal the clients pets - etc. A business license is given at a certain address to register this to a certain person to do specific services, and these businesses are charged to act in legal and ethical ways. Now as to bonding - when you handle clients money or possessions - including their pets - you must provide proof that if anything goes wrong - and a loss occurs that you can provide prompt and ready funds to replace any loss. Insured - well, even people who own houses have to have insurance against natural disasters and that would include payments for medical care is someone has an accident and slips and falls on their property. And service businesses have to have Liability insurance. Benefits? none for the entrepreneur - but people may not want to use your business if others offer assurances that you don't.by Judge Julie - 3 years ago
Licensing: A possible requirement
Bonding: Protects the customer against theft
Liability Insurance: Protects the petsitter