Pet Shop Insurance: Everything You Need to Know to Stay Covered

Pet owners in the United States spent $72.56 billion on their pets in 2018. The majority of this went to food and supplies. For pet shop owners or those considering getting started in the pet care industry, this is great news.

The pet industry is exploding, with more and more money being spent each year. Potential pet businesses may have hit a jackpot idea when they began their new business but it won’t go far without the proper pet shop insurance to back them up. This article breaks down everything you need to know about insuring your pet store business.

The Basics of Pet Shop Insurance

75% of businesses in the United States are under-insured. Without the proper insurance, you aren’t protected from claims against your business.

Pet store insurance will protect you from risks that have the potential to impact your business’s ability to operate. You’ll want insurance protecting the pets, inventory, customers, suppliers, and building. Pet store owners will also need an insurance policy to safeguard against staff liabilities.

You need to ensure you pick only the best pet shop insurance provider to know you’re covered when disaster strikes.

What Types of Coverage Are Available for Pet Shop Owners

Pet store insurance options will vary in coverage and costs depending on the location and size of your pet store. Most general liability insurance policies will cover $1,000,000 to $2,000,000 with rates sitting at lower than $60 per month. It’s a worthwhile investment to stand up to the risks of owning a pet store.

Besides general liability insurance, which is a common insurance policy to hold across industries, pet store owners will need to take out the following specific types of pet store insurance:

• General liability
• Business property
• Animal bailee
• Commercial auto
• Worker’s compensation
• Commercial flood insurance

What Risks Is Your Pet Store Exposed To?

Risks and exposures to your pet store can be anything as seemingly simple as a slip and fall to events as daunting as escaped animals. The following are risks your pet store will likely be exposed to:

• Animal mortality exposure
• Personal injury exposure
• Products liability exposure
• Premises liability exposure
• Crime exposures
• Inland marine exposures
• Business auto exposure

While you might have the mindset that nothing bad will happen to your pet store, you can’t prevent unfortunate accidents. Even if the likelihood of risk or exposure occurring seems low, it’s better to be protected with an insurance policy than to let your business take a hit.

Your insurance agent can help you pick out all necessary policies your pet shop will need to hold in order to be protected against all the common risks and exposures related to the pet industry. Beyond the pet industry itself, you’ll also need to consider any risks associated with owning a retail store.

Considerations When Selecting the Types of Insurance Your Business Will Hold Policies On

An insurance agent experienced in the pet industry can guide you toward the best set of policies for your needs. But to properly guard against risks, it’s best if you independently run through the following considerations:

• Common risks associated with pet store ownership
• Situations that could arise during normal business operations
• State required insurance
• Lender or investor insurance requirements

What Business Insurance Is Required by Law for All Businesses?

While some insurance policies are optional and left entirely up to the business owner, others are required by law. Those required by law are generally non-optional to protect other individuals your business has a relationship with.

The most commonly required insurance policies for pet stores are worker’s compensation and unemployment insurance. This can sometimes be avoided if you are the only employee working for your pet store.

However, the chance of you being able to independently operate a pet store are slim. Plus, many states now require you to provide worker’s compensation and unemployment insurance even if you are the sole employee of the business.

Have your insurance agent double-check any required laws in the state where your pet store operates to ensure you are in compliance.

Additional Small Business Insurance Options to Consider

Besides the pet store specific insurance considerations, you may be interested in taking out a policy on. This will require upfront thought on your part and an analysis of your business. You’ll want to consider if the risk of not having one of these specialized insurance policies is worth saving a little bit of money each month.

The forms of specialized insurance to consider include:

• Sexual misconduct liability
• Management liability
• Data breach
• Cyber liability
• Contractor’s insurance
• Commercial flood insurance
• Environmental liability

These types of insurance policies are optional. This means you don’t have to hold a policy for any of these options but it may be recommended to you. Do your due diligence to determine if these additional business insurance options are a good investment in the long-term safety of your business.

Picking the Right Pet Store Insurance for Your Business

Picking the best pet shop insurance options for your store is an integral part of keeping your business safeguarded from unfortunate claims against your business. Speak to an insurance agent who specializes in pet store insurance to get a better understanding of your specific needs.

And remember, you don’t want to fall into the category of under-insured businesses. Protect your pet industry business against claims and give it a chance to thrive for years to come.

Check out our related blogs for more pet store business information.