Dog destroyed bedspread--how to handle ??

Notify the pet parents right away. Tell them about the damage and that, much as you hate to do so, you will now have to crate the dogs at night. You have followed their instructions, so I wouldn't worry that much. Also, don't automatically assume that a customer is going to blame you or demand payment. Many can be very understanding. Rover's insurance covers damage at a client's home but there is a deductible and it is a secondary form of insurance, meaning that their own insurance company would be contacted first. However, no homeowners insurance policy would deal with anything as trivial a a bedspread. So it will likely be completely out of pocket for the customer.

I had a very similar thing happen to me, except this dog threw up all over the bed! I immediately texted her owner and let her know what had happened. She actually apologized to me for her pup's mess, and I asked her about washing it, etc. As long as you're up front about any issues, I've found that most pet parents are actually thrilled you take responsibility and keep them up to date on everything that's going on. It helps them to build trust in you and know that you're willing to handle whatever happens while they're away.