How Much Does Pet Care Insurance Cost? 2025 Rates

Pet care companies in the U.S. typically spend between $600 and $840 each year on business insurance. That works out to about $50 to $70 per month.

What Drives Premiums

Several factors influence how much you’ll pay for coverage:

• Claims history – A clean record helps keep costs down, while past claims can raise rates.
• Equipment value – Specialized tools or high-end grooming equipment increase property insurance costs.
• Business size – Larger operations with more clients and services usually face higher premiums.
• Location – Shops in busy cities or high-risk areas often pay more than those in quieter neighborhoods.
• Number of employees – More staff means higher liability and workers’ compensation expenses.
• Services offered – Adding medical care, grooming, or boarding increases exposure and raises premiums.
• Special risks – Handling aggressive pets or offering medical treatments can significantly impact liability costs.

Why This Matters

Understanding these cost drivers helps pet care business owners budget effectively and choose coverage that matches their risks. With the right plan, they can protect their business without overspending.

How Much Does Pet Care Insurance Cost?

On average, pet care businesses spend between $600 and $840 annually on insurance. That equals about $50 to $70 per month. These figures are only estimates, and the actual premium depends on the details of your business.

Why Costs Differ

No two pet care businesses are alike. A solo pet sitter working from home with minimal equipment will usually pay far less than a large daycare with multiple employees, a physical location, and high-value tools.

Key Cost Drivers

Several factors influence how much you’ll pay for coverage:

• Claims history – Filing past claims often raises premiums, while a clean record can lower them.
• Property size and value – Larger facilities or expensive grooming equipment increase commercial property insurance costs.
• Number of employees – More staff means greater liability exposure and higher workers’ comp expenses.
• Business interruption and add-ons – Extra coverage options add to the total bill.

Services And Location

The type of services you offer and where you operate also matter. A grooming salon with costly tools and many pets on-site may face higher property insurance costs than a part-time dog walker with minimal equipment. Similarly, businesses in areas with higher crime or more legal claims often pay more for liability coverage compared to those in quieter, low-risk neighborhoods.

Why This Matters

Understanding these variables helps pet care owners estimate insurance needs more accurately and budget for the real costs of protecting their business. With the right coverage, you can safeguard your operations without overspending.

Average Pet Care Insurance Costs For Coverage Types

When it comes to protecting your pet care business, different types of insurance cover different risks. Understanding the average cost, coverage details, and what influences pricing for each policy type can help you build a more effective insurance plan. Here’s a closer look at the major coverages most pet care businesses need.

General liability insurance: $50 per month

Business owner’s policy: $80 per month

Workers’ compensation insurance: $100 per month

Commercial auto insurance: $150 per month

Errors and omissions insurance: $55 per month

General Liability Insurance

The average cost of general liability insurance for a pet care business is about $50 per month.

General liability covers third-party bodily injury, property damage, and advertising injuries. For example, if a dog you’re caring for chews up a client’s expensive handbag while in your facility, this policy can help cover the cost to repair or replace the damaged item and any related legal expenses.

Typical policy limits are $1 million per occurrence and $2 million aggregate.

Factors that influence the cost include the business size, location, customer traffic volume, previous claims history, and any endorsements on your policy, such as an additional insured.

Average annual premiums by state:

Note: These estimates are based on average national General Liability Insurance premiums for pet care businesses, adjusted slightly for state-level differences. Actual premiums will vary depending on business size, services offered, claims history, and insurer underwriting practices.

Business Owner’s Policy (BOP)

The average cost of a business owner’s policy (BOP) is about $80 per month for a pet care business.

A BOP bundles general liability insurance with commercial property insurance. It protects against customer injuries, property damage, and loss or damage to the business’s building, equipment, and supplies. For instance, if a water pipe bursts overnight and damages grooming tables, kennels, and the reception area, the BOP would help pay for repairs and replacements.

Typical policy limits are $1 million per occurrence and $2 million aggregate for liability, with separate property coverage limits based on the value insured.

Cost factors include the business property value, location risk (such as flood or crime rates), business revenue, number of employees, and any optional endorsements like business interruption insurance.

Average annual premiums by state:

Note: These estimates are based on average national BOP premiums for pet care businesses, adjusted slightly for state-level differences. Actual premiums will vary depending on business size, services offered, claims history, and insurer underwriting practices.

Workers’ Compensation Insurance

The average cost of workers’ compensation insurance for a pet care business is around $100 per month.

Workers’ comp covers medical bills, rehabilitation, and lost wages for employees injured on the job. For example, if a pet groomer injures their back while lifting a large dog onto the grooming table, workers’ compensation would cover their medical treatment and a portion of their lost wages while they recover.

Policy limits are regulated by each state, but typically include medical costs and a percentage of lost wages without a set cap.

Premiums are influenced by the size of your payroll, the type of work employees perform, your claims history, and any implemented safety programs.

Average annual premiums by state:

Note: These estimates are based on average national Workers’ Compensation premiums for pet care businesses, adjusted slightly for state-level differences. Actual premiums will vary depending on payroll size, number of employees, claims history, and insurer underwriting practices.

Commercial Auto Insurance

The average cost of commercial auto insurance for a pet care business is about $150 per month.

For example, if an employee gets into an accident while driving the company van to pick up a dog for daycare, this policy would help cover the vehicle repairs, medical expenses, and any third-party claims resulting from the accident.

Factors influencing the cost include the number and type of vehicles, how often they are used, the driving records of employees, and whether you add endorsements like hired and non-owned auto insurance (HNOA) for employee-owned vehicles.

Average annual premiums by state:

Note: These estimates are based on average national Commercial Auto Insurance premiums for pet care businesses, adjusted slightly for state-level differences. Actual premiums will vary depending on the number of vehicles, driving records, coverage limits, and insurer underwriting practices.

Errors & Omission Insurance

The average cost of errors & omissions insurance for a pet care business is about $55 per month.

Errors & omissions insurance protects your business if a customer claims you made a mistake, gave bad advice, or didn’t do the job properly, and it caused them a financial loss.

For example, if a pet sitter forgets to administer a pet’s required medication, and the pet becomes ill, the owner could sue for negligence and veterinary expenses. E&O insurance would help cover your legal defense and any settlement or damages you’re required to pay.

The cost of errors & omissions insurance depends on things like how much coverage you want, how big your business is, and the kind of services you provide.

Average annual premiums by state:

Note: These estimates are based on average national Errors & Omissions Insurance premiums for pet care businesses, adjusted slightly for state-level differences. Actual premiums will vary depending on business size, services offered, claims history, and insurer underwriting practices.

Pet Care Business Insurance Costs By Provider

Pet care business insurance costs will vary greatly depending on the insurance carrier. Use the table below to find average costs across different providers.

Note: These estimates are based on average small business insurance costs for pet care operations (such as grooming, boarding, or daycare), typically including general liability, professional liability, and business owner’s policies. Actual premiums will vary depending on factors such as location, business size, number of employees, services offered, claims history, and coverage limits.

What Factors Impact Your Pet Care Insurance Costs?

Insurance premiums for pet care businesses are based on your overall risk profile. Underwriters look at the services you provide, the number of pets you handle, your location, equipment value, staffing levels, and past claims to determine how much you’ll pay for coverage.

Property And Equipment Value

High-value assets such as grooming tools, boarding kennels, or climate-controlled suites increase property insurance costs. Many businesses also add extra protection for equipment breakdowns or losses caused by power outages.

Claims History

A history of frequent claims, whether for pet injuries or property damage, can raise premiums. Maintaining a clean record helps reduce costs and may even qualify you for discounts.

Special Risks

Businesses that administer medication, care for aggressive animals, or work with high-risk breeds face greater liability. These situations increase the chance of accidents, which drives premiums higher.

Size Of The Business

Larger facilities with more pets, employees, and equipment carry higher risks. More staff means greater workers’ compensation exposure, while more animals increase the likelihood of accidents or property damage.

Location

Where your business operates plays a big role. Shops in high-crime areas or flood-prone regions often pay more for liability and property coverage. Businesses in quieter, low-risk neighborhoods usually benefit from lower premiums.

Type Of Services

The services you offer directly affect costs. A full-service boarding facility with grooming, daycare, and training will typically pay more than a small dog walking or pet sitting business. The broader the services, the higher the risks.

How To Lower Your Pet Care Insurance Costs

Running a pet care business comes with plenty of expenses, but your insurance premiums don’t have to overwhelm your budget. While coverage is essential, there are practical ways to reduce costs without losing protection.

Raise Your Deductible

Opting for a higher deductible is a simple way to lower monthly premiums. Just make sure you can comfortably cover the out-of-pocket amount if a claim arises.

Bundle Policies Together

Combining coverage often leads to savings. Many insurers offer a Business Owner’s Policy (BOP) that merges general liability and property insurance at a reduced rate. Adding workers’ compensation through the same provider can unlock even more discounts while simplifying paperwork.

Build A Safer Workplace

Accidents can quickly drive up insurance costs. Keeping kennels secure, maintaining clean play areas, training staff on safe animal handling, and using proper safety equipment all help reduce risks. Fewer accidents mean fewer claims, which lowers liability premiums over time.

Ask About Discounts

Insurers often reward loyalty and upfront payments. You may qualify for reduced rates by signing a multi-year agreement or paying your premium in full instead of monthly installments.

Strengthen Your Safety Program

Workers’ compensation costs can be managed by focusing on employee safety. Training staff on lifting heavy equipment, cleaning kennels properly, and using grooming tools correctly reduces injuries. When fewer claims are filed, premiums stay lower.