The pet industry in the US has seen explosive growth over the last decade, fuelled by a deepening emotional connection between people and their pets. Dogs, cats, and even exotic animals have become more than just companions; they are now often treated as family members.
This shift has led to a surge in demand for pet-related services, from dog walking and grooming to pet sitting and boarding. With this growth comes a need for specialized insurance coverage, leading to a rapidly expanding market for pet-related business insurance.
Insurers and brokers that specialize in this area are well-positioned to capture a growing share of the market, particularly as more small businesses enter the space.
Like any service-based industry, the potential risks within pet-related businesses are substantial. For one, the surge in demand for pet services brings heightened responsibility for business owners.
Customers expect their pets to be cared for with the same attention and care they provide at home. This high level of trust means that any mistake, accident, or oversight can lead to significant liability.
However, traditional business insurance doesn’t always cover the specific risks associated with handling live animals. For instance, if a pet is injured while in the care of a pet sitter, or if two dogs get into a fight during a walk, these scenarios require unique coverage that general liability policies often don’t address.
Pet-related business insurance can step in to fill this gap, offering specialized policies that cater to the distinct needs of pet care providers. These policies typically include coverage for property damage, bodily injury, and professional liability, but they also extend to less common risks, such as coverage for veterinary costs if a pet is hurt while in the business’s care.
For example, if a client runs a pet daycare or boarding facility, and a dog escapes and gets hit by a car, requiring emergency veterinary care, a general liability policy wouldn’t cover the medical expenses. However, with a specialized pet care policy that includes care, custody, and control coverage, the cost of treatment would be handled by your insurance provider.
Many pet businesses also operate from their own homes or lease commercial spaces, meaning property insurance is essential. Pets can cause significant damage to business property, whether it's chewing up furniture, scratching walls, or causing damage to equipment. Additionally, your business could be affected by a fire, flood, or other disaster. Property insurance helps cover the cost of repairing or replacing damaged items.
If you're renting a space for your pet business, your landlord may require you to have property insurance as part of your lease agreement. Even if it's not required, it's still a good idea to have coverage to protect your business assets. For those operating out of their homes, homeowners insurance often won’t cover business-related damages.
One of the main trends driving the growth of the pet business sector is the deep emotional connection people have with their pets.
According to Shannah Cantillon (pictured above), director at Pet Business International (PBI), this shift has been particularly noticeable in the US, where pet ownership is increasingly seen as an alternative to having children.
“In the last 10 to 30 years, the role of pets has completely shifted,” Cantillon said. “Especially in the US, many millennials are putting off major life decisions like having children in favor of getting a pet.”
This cultural shift has created a booming market for professional pet care services. Dog walkers, pet sitters, and groomers are now seen as essential services, and the demand for reliable, professional care has never been higher.
PBI means to ride this wave of growth into the US. The UK-based insurance company provides bespoke insurance for pet-related businesses, emphasizing access and injury coverage.
After successfully launching in the UK, Ireland, Spain, Sweden, and Australia, PBI aims to gradually enter the US market, starting with 12 states: Arizona, Michigan, Minnesota, New Jersey, Connecticut, Florida, Iowa, Illinois, Indiana, Tennessee, Texas, and Utah.
With the increasing complexity of the legal and financial risks that these professionals face, comprehensive insurance coverage has become an essential component of running a successful pet business.
Cantillon stressed that this segment presents huge opportunities for personal lines agents.
"Right now, we're direct-to-consumer, but we’re definitely open to working with brokers and agents,” said Cantillon. “The goal is to offer easy, instant coverage, so there's less need for brokers to go back and forth on negotiating premiums or proposals.”
What are your thoughts on the growth of the pet business sector, and the unique risks that they face? Please share your comments below.
