Times may be tough but the beautiful thing about the pet care industry is that it’s nearly recession-proof. However, with the economy slowing down and travel coming to a near halt, even the seemingly safest industries are not shielded from accidents, liabilities, and world affairs.
So, what kind of insurance do you need to keep things running and your pet guests happy and healthy? Let’s take a look at what pet business insurance actually is and which types you need.
Do You Really Need Pet Business Insurance?
Do you accept money in exchange for services rendered involving pets? Then yes. You absolutely do need pet business insurance. Whether you’re a part-time dog walker/sitter, groomer, or run a full-service facility, you need the right protection.
Pet business insurance doesn’t just protect you, it protects your guests and clients as well. God forbid something were to happen, pet business insurance would help lessen the financial blow if someone were to sue you.
Why would someone sue you? Great question! Here are some potential possibilities that could cause you financial harm without pet business insurance:
- Damages and medical bills for injured pets
- Damages for lost pets
- Damages and medical bills for dog bites (both to people and animals)
- Damages and loss of income for bad grooming services
- Damages and medical bills for pets that are killed
- Damages and medical bills for pets that contract an illness or virus while in your care
Let’s take a look at the type of pet insurance your business could benefit from.
1. General Liability Insurance
General liability insurance protects your business from an employee or customer who claims that you caused damage to their property, pet, or their body. This type of insurance is a must for pet care businesses.
Some example situations include:
- The dog bites someone or another pet while you’re out walking them
- A pet gets hurts at your business (bite, slips/falls, runs or jumps and injures themselves)
- A pet gets injured outside of your business (this is ideal for pet sitters who may not have a physical place of business but still work in the pet care industry)
Check with your local insurance company to make sure that you are covered for both your county, city, and state. You may need additional coverage depending on your area’s laws.
2. Business Owner’s Policy
BOP, aka Business Owner’s Policy, is slightly different from general liability insurance. BOP combines liability and commercial property insurance into one policy.
You will receive all of the benefits of general liability insurance and protection over your place of work and the equipment there. If for some reason you were unable to operate your business because of equipment damage, your insurance policy will cover lost income and time.
3. Canine Influenza Insurance
If you have a grooming center, boarding facility, or even just pet sit at home, any space in which you have multiple pets in and out, you are putting your pet guests at risk for illness.
Did you know that canine influenza is just as rampant, dangerous, and deadly than a traditional cold or canine cough for pets? Very few insurance providers will cover lost revenue for canine cough or illness outbreaks. If they do, typically they will provide only up to $50,000.
David Pearsall has committed his professional work to helping pet businesses stay safe from potential illness outbreaks. Having insured more than 40,000 businesses (or about 8,000-9,000 every year), David and his team have committed themselves to helping pet care businesses stay financially safe during uncertain times.
Check out our interview with David Pearsall to learn more about canine influenza and how this very serious illness outbreak could harm your business next. If you’re interested in learning how Business Insurance of the Carolina’s can help your pet business, you can learn more here.
4. Cyber Liability Insurance
In an increasingly digital world, cyber liability insurance is a must. If you run a website or accept payments online, cyber liability insurance protects your business if you are attacked or have a data breach.
The best part about cyber liability insurance? It not only protects you from your losses but it protects you from lawsuits if a customer or vendor were to sue you from being improperly exposed during a data breach.
5. Workers’ Compensation Insurance
Whether they’re 1099 or W-2, if you have employees, you need workers’ compensation insurance. Depending on your state, workers’ comp is typically mandatory to run a legit business. Despite the cost, it’s actually much cheaper to carry this type of insurance than to bear the burden of a lawsuit from a worker injury or damage; especially for small businesses.
Workers comp helps protect employees who struggle with an injury or disability caused at work. Like all of these insurance types, workers comp protects both you and your employees.