We here at Pet Business insurance want to make sure every pet business gets insured with the specialized types of insurance coverage that are available to them. Unlike normal business insurance, pet businesses have extra options such as animal bailee coverage when getting property coverage. Animal bailee coverage protects business owners when a pet in their care gets injured or dies.
According to Forbes, this is a great time to start your very own pet care business! Millennial and Generation Z Americans are pet-obsessed, accounting for 62% of pet ownership.
Pet boarding facilities, pet grooming, dog walking, and pet supply businesses are always in demand. While these businesses cover different pet-owner needs, they all have one thing in common. They all require different types of pet business insurance like pet grooming insurance, dog walking insurance, pet boarding insurance and so on.
If you’re new to the pet business game, you may not know exactly what kind of coverage you’ll need. Like most business owners, you’ll need insurance to protect your business property and your employees. Since you’re working with living, breathing animals, you’ll need insurance to protect them, too!
Read on to find out more about the types of pet business insurance to get a better sense of the coverage you’ll need.
The Importance of Pet Business Insurance
We all hope to avoid emergencies and accidents but it’s imperative to plan for the unforeseen. This is exactly what pet business insurance is designed to do for the pet industry. Read on for a few examples of the liabilities pet business insurance guards you against.
Client or Animal Injuries
You should always be prepared to compensate for injuries that happen on your property. You could face a lawsuit if someone slips and injures themself in a fall. You could also face a lawsuit if a dog in your car gets attacked, ill, or goes missing.
Workers’ compensation is a necessity for all injuries. If one of your employees gets injured on the job, you are most likely legally obligated to cover their out-of-pocket medical bills and pay them for the income they’ve lost during their recovery.
Whether it is your property that undergoes damage or the property of a client, you should have coverage for this. If it is your own property that undergoes damage, you will need to pay for repairs and renovations. You will also need to account for the business income lost in the days you are closed for renovation.
Who Needs Coverage
Who in the pet industry needs insurance coverage? If you have business property, interact with clients and animals, and hire employees, you need coverage.
This includes pet boarding businesses, kennels, and dog daycares. It also includes both brick-and-mortar and mobile dog grooming businesses. Dog walkers and dog trainers should also have pet business insurance.
Even if you don’t work directly with dogs and instead manufacture or supply pet products, you should still seek coverage.
A Breakdown of Pet Business Insurance
Whether you choose to get an insurance bundle or customize your coverage, it’s important that you understand the different types of pet business insurance. Our goal is to ensure that you know exactly what your insurance policy can take care of and what your liabilities are. Read on for a breakdown of coverage options and examples of how each type would come in handy.
General liability insurance is designed to protect your business from third party claims. These claims arise when someone other than an employee or manager is injured, or their personal property is damaged while they’re visiting your location. If their injury or personal property is attributed to your negligence as a business owner, they can file for financial compensation.
Imagine a customer has entered your property and your floors are damp from recent mopping. There are no wet floor signs in sight warning the customer of the wet floors and they slip and fall, injuring their back. If they file a claim and win their case, general liability insurance will help you pay for their medical bills and any other resultant expenses they accrued because of the accident.
Commercial property insurance protects your business’s physical assets.
This includes your buildings and facilities. It also includes your grooming tables, products, kennels, outdoor equipment, and more. If it’s a physical object you’ve spent money on for your business, it’s covered.
Commercial property insurance is crucial in the event of a fire, explosion, or burglary, among other unforeseen emergencies. If your commercial property is destroyed or stolen, commercial property insurance will help you pay for repair or replacement.
Commercial auto insurance is a must if you use business-owned or business-leased vehicles. If these vehicles are involved in a third-party injury or third-party property damage, you will be responsible for compensation.
Non-owned auto coverage is an alternative option for pet business owners who do not have business-owned or business-leased vehicles. In the event that you or one of your employees causes an injury or damages someone’s property while on the premises of your business, you may still be held accountable.
In other words, commercial auto insurance will protect your business’s vehicles both on and off-site. Non-owned auto coverage will protect your employees’ vehicles when they are on your business’s property.
Workers’ compensation insurance provides coverage in the event of an employee workplace injury. Unless it can be proven that their injury was entirely their fault, you will likely need to provide workers’ compensation for their medical bills and lost income that results from their injury. Think of it as general liability insurance designed specifically for your employees.
Workers’ compensation laws vary by state. Whether or not you need it will depend on things like the number of employees you have and the position those employees hold. For example, in Arizona, you need coverage if your pet business has one or more employees with the exception of contracted workers or business partners.
While commercial property insurance will help pay for repair and replacement, business income insurance is designed to protect your financial losses. In the time that you are taking care of your repairs or replacements, you may have to close part or all of your business to the public. This results in the loss of income you would have received during those business hours.
New and small businesses should always consider business income insurance. In the early stages of starting an independent business, expenses tend to weigh heavily on your net profit. Even a few days of missed business could send you into the red and business income insurance can prevent that from happening.
Tenant improvements refer not to repairs made in the face of property damage but additions that improve the state and value of the property. If you own your business property, tenant improvements insurance is a must. It can help you pay for any improvements you think are necessary for the betterment of your business.
If you lease your property, it is probable that you are still liable for at least part of these expenses. How much you owe is a legal issue that comes down to the lease you’ve signed. Whether or not you have to pay for improvements will also depend on who is considered the “owner” of the improvements.
To clarify what we mean by improvements, let’s look at a few examples. You may install a new HVAC system or update your electrical wiring. Tenant improvements also include renovations or additions you undertake to better utilize your space or expand it.
You’ve covered third party guests with general liability insurance. You’ve covered employees with workers’ compensation. Now it’s time to cover your furry and winged guests with animal bailee!
Animal bailee coverage will help you cover the compensation expenses you may accrue in the event that an animal in your care is lost or injured. For example, imagine that you run a grooming service and a dog escapes and runs away due to an employees’ negligence. You may owe the owner compensation for any resources they used to locate the dog as well as any vet bills if the dog was injured while lost.
Bonding insurance offers your client added protection. It guarantees that once working with you, they will receive compensation if you or your employees act dishonestly.
This might sound a bit vague but consider dishonesty a breach of contract. It includes offenses such as theft, vandalism, and deceit. When your pet business is covered by bonding insurance, customers and clients will feel more confident entering into a contract with you.
Employment Practice Liability Insurance
Employment practice liability insurance protects you from lawsuits that arise in the face of unjust business practices. Unlike other types of insurance, it offers coverage for claims filed by employees and third parties.
Claims of this nature are filed in cases of discrimination, harassment, and wrongful termination. This is important if you have multiple hiring managers, cashiers, groomers, or any other employees who act, at times, as the face of your business. You may not be around to intervene in a bad business practice, but you can make sure you’re covered in the event of a lawsuit!
Protect Your Pet Business
Pet business insurance ensures that your pet business, old or new, big or small, is protected.