The location of your pet business matters.
A brick-and-mortar establishment will need insurance coverage for the business’s physical location, which could be a storefront, a training facility, a groomer shop, or a kennel. You’ll need to protect the building and its contents, and you’ll want general liability coverage for any accidents that could occur on your property or damages caused by an employee, especially since you’re likely to have high foot traffic. If you’re on the move often, such as a mobile grooming service or a pet trainer who makes house calls, your needs won’t be the same.
Your handling of animals could require specific coverage.
If you allow pets in your establishment, you run the risk of someone’s animal injuring another person or animal, even if they are being handled by their owner. If you take animals into your own care, custody, or control, whether in your location or for transport, you’ll need specific coverage called animal bailee insurance to offer financial protection in the event that something happens to an animal while in your care.
Use the yellow hot spots and explore how pet business insurance can help protect against common risks.
Your business is susceptible to many risks, such as claims due to bodily injury, property damage, personal injury, and more. Because of the presence of animals and the potential for high foot traffic, your business faces risks unlike other operations.
General liability insurance is an absolute necessity for any business. It provides broad coverage when you are deemed responsible and liable, and will also pay to defend any covered lawsuit or action, regardless of its merit. Additional limits are also available with a commercial umbrella insurance policy.
The internet has spun a whole new web of liability exposures. E-commerce, social networking, cloud storage, and other technologies bring great benefits to large and small businesses alike. But with these benefits also come challenges, including protection of privacy, data, and the financial information of your customers.
Cyber liability insurance protects your business in the event of unauthorized access to electronic data or software within your network. It also provides coverage for spreading a virus, extortion, accidental release of personal identifiable information, and resultant damage caused by a lost or stolen laptop or other mobile device. This coverage is quickly becoming more and more important as you embrace technology to help run your business.
An animal in your care is your responsibility whether you’re offering boarding, day care, training, grooming, or medical services. Regardless of the length of time the animal is with you, you can be held liable if it is hurt while it is in your care, custody, or control.
Animal bailee provides coverage in the event an animal is injured or killed for reasons unrelated to your care. For example, this can include damages arising from fire, theft, escape, flood, or an attack by another animal.
What would you do if a fire impacted the operation of your business? Or what if a pipe leak caused a system outage or extended downtime? These and other events can destroy your ability to work and bring in revenue, which can have a major long-term impact on the viability of your business.
Business interruption insurance compensates you for lost income if you cannot operate as normal due to damage that is covered under your commercial property insurance policy, such as fire or water damage. This type of insurance covers the revenue your business would have earned, based on your financial records, had the incident not occurred. The policy also covers continuing operating expenses such as rent, electricity, and ordinary payroll.
If one of your employees receives an injury or becomes ill due to a work-related occurrence, you are required by law (in most cases) to have the proper coverage in place.
Workers’ compensation insurance protects your employees in the event that a job-related injury or sickness occurs during the course of their employment. This coverage is required by law, so be sure that your practice has it.
If a fire breaks out, your commercial property and everything within it can suffer a significant loss. This can have a detrimental effect on all aspects of your business.
Commercial property insurance can help protect the property your business owns or leases, including things like equipment, inventory, furniture, and fixtures. Whether you own your property or lease your workspace, commercial property insurance can be purchased separately or can be combined with other necessary coverage to protect your business’ physical assets.
If your business sells merchandise such as toys, leashes, collars, or other accessories, you are responsible if something purchased at your store injures or kills an animal. If you sell food, there’s always a chance it can spoil or be contaminated.
If items you sell hurt, sicken, or cause death to an animal, you will likely face a lawsuit. Defending against such claims, settling the suit before trial, and being ordered to pay damages can all be very costly. Product liability insurance offers protection for scenarios such as this.
What happens when your business faces a large liability loss that exceeds the basic limit of your standard policy?
A commercial umbrella insurance policy provides high limits of insurance, typically between $2 million and $10 million. Coverage is extended over your general liability, workers’ compensation, and business auto insurance. It provides a great safety net and helps to secure protection for your business.
As much as we try to avoid them, mistakes and accidents happen. For example, an animal can move abruptly and be hurt by scissors during a grooming session or it could fall from the table. Another possibility is that you could perform services on the wrong animal, resulting in a lawsuit.
Professional liability insurance is an important coverage for pet groomers. It can help cover the cost of legal defense should you be accused of harming an animal through a mistake or negligence. If you’re held liable, this coverage could also include payout of damages awarded.
Mobile grooming businesses are on the rise and they require specialized coverage. Not only is your business being transacted in various locations, you’ll also be transporting valuable equipment as you travel around your area.
Standard business auto insurance isn’t enough as these policies typically do not cover any customization made to your grooming vehicle, including tables, sinks, dryers, and the like. You’ll also want to be sure you’re covered wherever your business takes you, whether you’re on the road or parked and providing services at a client’s home.
If your business offers pet adoption events, there are a number of things that can go wrong. From event cancellation to property damage and a number of situations in between, you may be surprised to know that standard general liability insurance may exclude these claims.
Businesses that offer pet adoption events should consider special event insurance coverage. You’ll want to make sure that it provides coverage for events that include animals if any will be present. If your event will be held off-site, your policy should take that into consideration as well.
If part of your business includes a non-profit organization such as fundraising and adoption services, you likely have directors and officers. If a director or board member makes a decision that results in harm to the organization, you are open to a lawsuit. Defense against such claims and judgements against your business could result in significant expense.
Directors and officers liability insurance protects your directors, officers, trustees, employees, volunteers, and the entity from any act or alleged act, error, omission, misstatement, misleading statement, or breach of duty.
The products you sell could put you at risk.
If you sell food, toys, or accessories for pets, you could be held responsible if an animal is hurt or sickened by one of your products. Groomers could be sued if an animal becomes injured because of a certain shampoo. While the manufacturers will likely bear responsibility, you could be named in a lawsuit, which would be expensive to defend. Having proper liability insurance may help cover those costs, as well as any damages you are responsible for.
What types of businesses need pet business insurance?
If you operate a business that deals with pets, you’ll likely need specialized coverage. This includes groomers, kennels, pet stores, pet trainers, veterinarians, non-profits, and more.
What is animal bailee insurance?
This is coverage for pet businesses that take their customers’ pets into their care, custody, and control and helps cover the costs related to the injury, death, or loss of a pet.
Don’t forget the standard business coverages.
There are some business insurance products you’ll likely need, regardless of your industry. Commercial umbrella insurance offers protection beyond the limits of some of your other policies. Business auto insurance is vital if your business owns a vehicle or your employees use their personal vehicles to perform work duties. A cyber liability insurance policy offers protection against the financial losses associated with data breaches. These are some examples of how your niche business still needs general coverage for your day-to-day operations.
Interested in pet business insurance? Contact us to discuss your business operations and your coverage needs.