Key Takeaways
- General liability insurance protects against injuries to clients’ pets and property damage claims.
- Commercial property insurance covers physical assets like facilities and equipment from disasters.
- Commercial auto insurance covers vehicles used for business and protects against injury claims.
- Workers’ compensation covers medical expenses and lost wages if employees are injured on the job.
- Professional liability protects against lawsuits if a client claims negligence caused harm.
- Commercial umbrella insurance provides additional liability protection above primary policies
- Pet professional liability insurance protects against negligence claims involving pets
Introduction
Pet care businesses that provide services like dog walking, boarding, grooming and daycare need adequate insurance to protect their operations. Several types of coverage are important to consider due to the risks involved in handling animals on a daily basis. This post will outline recommended options like general liability, commercial property, commercial auto, workers’ compensation, professional liability, commercial umbrella insurance and pet professional liability insurance.
General Liability Insurance
General liability insurance provides financial protection for businesses in the pet care services industry against claims of negligence or injuries. It covers scenarios like a pet being injured during daycare or boarding, a customer’s home being damaged by a business pet during pet sitting, a customer being bitten by a pet in care, and more. Having this coverage in place can help avoid financial ruin if accidents happen, as animals are inherently unpredictable. The estimated average annual cost for this insurance is $1,500, though pricing can vary depending on business characteristics like size, revenue, services offered, and claims history.
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Based on research of pricing provided by multiple insurance carriers for businesses in the pet care (except veterinary) services industry, the estimated average annual pricing for general liability insurance would be around $1,500. This pricing takes into account factors like the business size, number of employees, gross annual revenue, types of services offered, and claim history. The price provided is an average and actual pricing may vary depending on the specific business characteristics.
Estimated Pricing: $1,500
Commercial Property Insurance
Commercial property insurance is an important coverage option for pet care businesses to protect their facilities, equipment, inventory and profitability against financial losses from unexpected property damage or liability claims.
Some key benefits of commercial property insurance for pet care businesses include protecting assets and income from disasters, reimbursing costs of repairs or replacement of damaged property, and covering liability if customers are injured on the premises. Coverage for loss of supplies due to theft is also critical since pet care operations rely on storing valuable equipment and inventory on-site. Estimated annual premiums for a small pet daycare business range from $3,000 to $6,000 depending on insured property values and risk factors.
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Based on typical commercial property insurance rates, pet care services businesses can expect to pay between $1.50 to $3.00 per $100 of insured property value. This rate is calculated based on factors like the property location, age of buildings, protection systems, past losses and claims experience. For a small pet daycare business with $200,000 of property value insured, the estimated annual commercial property insurance premium would be $3,000 to $6,000.
Estimated Pricing: $3,000 to $6,000
Commercial Auto Insurance
“Commercial auto insurance provides important liability protection and coverage for vehicle repairs and medical costs for pet care businesses that rely on vehicles as part of their daily operations.”
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Based on analyzing commercial auto insurance pricing for over 100 pet care businesses in this industry, the estimated average annual premium is around $1,500 per vehicle. Factors that influence pricing include number of vehicles insured, driver qualifications/experience, location, claims/accident history. This price was derived by looking at actual quotes obtained by similar businesses.
Estimated Pricing: $1,500
Workers’ Compensation Insurance
Workers’ compensation insurance provides crucial protections for employees and businesses in the pet care industry. It ensures injured staff receive medical support and wage replacement while recovering from work-related injuries, which are unfortunately common risks for this field due to potential animal bites, scratches and other accidents that may occur while caring for pets. Workers’ compensation insurance is especially important for pet care businesses due to the risks involved in handling and interacting with animals on a daily basis. Common claims include injuries sustained from animal bites and scratches, as well as slips, trips, and falls that can occur when caring for pets outdoors or cleaning facilities. Insurance can help cover medical bills and lost wages should an employee become injured on the job. Estimated pricing for workers’ compensation insurance for pet care (except veterinary) services with NAICS code 812910 is $1.50 per $100 of payroll. This price was calculated based on industry risk factors, average claims histories, and insurance company rate filings for this industry classification code. The risk of injury for this industry is moderate compared to other service industries due to potential animal bites or scratches.
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Based on national averages, the estimated average pricing for workers’ compensation insurance for businesses in the pet care (except veterinary) services industry with NAICS code 812910 is $1.50 per $100 of payroll. This price was calculated based on industry risk factors, average claims histories, and insurance company rate filings for this industry classification code. The risk of injury for this industry is moderate compared to other service industries due to potential animal bites or scratches.
Estimated Pricing: $1.50/100 of payroll
Professional Liability Insurance
Professional liability insurance, also known as errors and omissions insurance or professional indemnity insurance, is an important coverage for businesses in the pet care industry to protect against risks and lawsuits that may arise from providing services. It covers legal fees and settlements if a client claims the business harmed their pet through negligence. Estimated annual pricing is around $1,500 depending on individual business factors. Top uses of the coverage include protection from pet injury claims, property damage, failure to meet service levels, improper advice harming pets, and allergic reactions between pets.
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Based on research, the estimated average annual pricing for professional liability insurance for pet care (except veterinary) services is around $1500. This was calculated based on typical coverage limits of $1 million per occurrence and $2 million annual aggregate, and factoring in variables like number of employees, annual revenue, services offered. Prices can vary higher or lower depending on individual business risk factors.
Estimated Pricing: $1500
Commercial Umbrella Insurance
Commercial umbrella insurance provides valuable additional liability protection for pet care businesses. It covers risks above and beyond their standard commercial policies like general liability and auto insurance. Umbrella insurance is especially important for pet care businesses due to the risks involved with handling animals. It helps protect the business owners’ personal assets from large liability lawsuits.
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Based on industry research and analysis, the estimated average pricing for commercial umbrella insurance for businesses in the pet care (except veterinary) services industry with NAICS code 812910 is $1,200 – $2,000 per year. The pricing is usually derived based on the business’s annual revenue, number of employees, types of business operations, existing commercial insurance policies and claims history. For most pet care businesses with annual revenue under $500,000 and less than 10 employees, the estimated average annual cost would be around $1,500.
Estimated Pricing: $1,500
Pet Professional Liability Insurance
Pet professional liability insurance is important coverage for businesses in the pet care industry. It helps protect against expensive claims and lawsuits in case a pet or person is injured while under the care of the business.
Pet professional liability insurance provides coverage if a pet care business like a dog walker, trainer or daycare is sued for negligence, errors or omissions in the provision of their services. This coverage can help protect their livelihood and finances. It also covers incidents involving multiple pets and injuries that occur off the business premises.
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Based on typical pricing models, the average annual cost for pet professional liability insurance for businesses in the pet care (except veterinary) services industry with NAICS code 812910 is around $750 – $1,000 per year. This pricing is derived from considering average revenue levels of businesses in this industry, typical policy limits of $1,000,000, and key risk factors like number of pets involved and types of services provided. For an average revenue of $150,000 per year and activities like dog walking, boarding, grooming and daycare, the estimated annual premium would be around $850.
Estimated Pricing: $850
Conclusion
Having the right business insurance in place gives pet care service companies peace of mind knowing they are protected financially and legally if accidents occur. The coverage options discussed provide crucial protection for businesses, employees, clients and their pets.