Get a quote on Business Insurance
When you run a pet grooming business, it’s important to ensure that you are prepared for the risks that could affect your company, from a dog being injured while in your care to a fire or storm that damages your property. Coping with a lawsuit or disaster can be financially ruinous. The right selection of business insurance policies can provide financial support and peace of mind.
What insurance coverage do I need for my pet grooming business?
There are many types of insurance coverage to consider, but these policies are particularly relevant to pet groomers:
Bailee’s Coverage
When you perform animal grooming services, customers leave their pets in your care. If a pet is injured while in your care, you could be held liable. Although it’s important that you hire skilled groomers and enforce safety guidelines, it’s impossible to completely eliminate the possibility of harming a client’s animal. Bailee’s coverage, sometimes called animal bailee coverage, can step in to cover customer losses if a pet is harmed while it is in your care, custody, or control.
Example:
- Two dogs that have been dropped off at your grooming salon get into a fight. They both require veterinary attention. Animal bailee insurance would cover the dogs’ medical costs.
Commercial Property Insurance
If you own or lease a commercial space for your pet grooming business, it’s crucial that you have coverage for the value of your building, tools, equipment, furniture, and other business property. If a fire or storm damages your pet grooming business, it can be difficult and costly to rebuild. Commercial property insurance can provide funds to replace or repair your business property if it is destroyed or damaged by a covered peril such as fire, explosion, storm, vandalism, and more.
Example:
- During a storm, a power line falls onto the roof of your grooming salon and starts a fire. Commercial property insurance would pay to repair the building and replace destroyed property.
Business Interruption Insurance
Business interruption insurance, also called business income insurance, provides funds to cover lost income and operating expenses if you are forced to temporarily close your business due to property damage from a covered peril. Commonly covered perils include fire, lightning, windstorm, hail, explosion, and vandalism. It may not be possible to continue dog grooming operations if your property is damaged; business interruption insurance can help you stay in business while repairs are completed. This coverage can be added to your commercial property or business owner’s policy.
Example:
- After a fire severely damages your grooming salon, you must close for several weeks while repairs take place. Business interruption insurance would cover your lost profits, employee salaries, and rent payments while your business is temporarily closed.
General Liability Insurance
Since pet groomers are frequented by many pet owners as they drop off and pick up their animals, it’s important to protect your business from the liabilities that can arise if someone is injured or their property is damaged on your business premises. In these situations, general liability insurance can step in to cover incidents of third-party property damage and bodily injury. General liability insurance can provide funds for any medical costs, legal fees, or damages in the event of a third-party injury or lawsuit.
General liability insurance also includes coverage for product liability. Many pet groomers sell pet shampoos, wipes, and other grooming products, and if a customer or their pet suffers any injury or damage due to your products, your business could be held liable.
Examples:
- Bodily injury: A customer slips on a wet floor at your pet grooming facility and falls, badly injuring his back. He requires medical attention. Your general liability insurance would pay for medical expenses and legal fees if the customer sues.
- Product liability: A number of customers suffer severe skin rashes on their hands after using dog shampoo purchased at your grooming salon. They file suit against your business, claiming the product you sell caused bodily injury. General liability insurance would provide coverage.
Workers’ Compensation Insurance
Workers’ compensation insurance provides financial and medical benefits for employees who are injured or fall ill as a result of their work. Workers’ comp will pay for medical expenses, lost income, and rehabilitation for injured workers, and will also provide death benefits and funds to cover funeral costs in the case of a work-related death.
For pet groomers, there is a high risk of animal bites, scratches, or communicable diseases. In addition, groomers may suffer injuries from long periods of standing, slips or trips and falls, repetitive strain, or accidental cuts.
Workers’ comp coverage is legally required for companies with employees in almost every state, and penalties can be severe if you do not have adequate coverage, so it’s important to make sure that you are complying with state laws.
Example:
- A dog bites one of your dog groomers, causing a wound that requires medical attention and stitches. Workers’ compensation would cover the employee’s medical expenses and a portion of lost wages if she is unable to work for a time.
Commercial Crime Insurance
Commercial crime insurance provides protection from financial losses related to crimes such as theft, burglary, robbery, forgery, and fraud, committed by both outside parties and internal employees. Pet groomers may accept cash payments, see large numbers of customers, and have employees who operate cash registers or have access to safes, making these businesses vulnerable to crime by employees or outside parties.
While you may be able to implement security procedures and thorough background checks of employees, it’s impossible to eliminate every crime risk. Commercial crime insurance can provide the extra protection you need in case your business is a victim of a crime or employee dishonesty.
Example:
- One of your new employees is found to have stolen over $1,000 from a cash register. Your commercial crime insurance would cover the loss.
Commercial Auto Insurance
If your company provides mobile grooming services and owns or leases vans, trucks, or other vehicles, you’ll need to secure a commercial auto insurance policy. Commercial auto insurance will pay for damages if you or your employees are at fault in a collision while driving a company-owned vehicle. Commercial auto insurance also covers your company vehicles if they are physically damaged or lost due to theft, vandalism, collisions, or other hazards.
Example:
- While driving to a client’s home for a grooming service, your employee becomes distracted, runs a stop sign, and crashes the company van into an oncoming vehicle. Your commercial auto insurance would cover the physical damages to both vehicles as well as any medical costs if the other driver is injured.
Additional Coverages
- A business owner’s policy (BOP) can be a good choice for many pet grooming businesses. Offered by many insurers, a BOP combines general liability, property, business income, and extra expense coverage into a single package, and it can often be customized with endorsements to suit the particular needs of your business.
- Cyber liability insurance protects your business from the financial consequences of cyberattacks, data breaches, and other cyber threats. When you operate a pet grooming business, you may store customers’ credit card information and other personal data; if this data is breached, you could be held liable. Cyber liability insurance can provide the funds to defend your business in a lawsuit, as well as any expenses necessary to recover from a cyber event.
- Employment practices liability insurance (EPLI) protects your business against lawsuits by prospective, current, or former employees accusing your business of wrongful treatment such as discrimination, harassment, or other employment-related issues.
Pricing and Quotes
Pricing for business insurance will vary based on the type of insurance coverage and the risk profile of your business. Insurers consider factors such as:
- Business size
- Industry
- Location
- Number of employees
- Claims history
Businesses with higher risks will have higher premiums than those deemed lower risk. For example, a pet grooming business with a history of frequent claims will face higher premiums. Premiums also rise as you increase the limits of insurance. Different insurance companies have different models for rating risks, so it is worth comparing pricing across different insurers.
In order to get an accurate estimate on pricing, it’s best to get a quote from a reputable insurance company. Below we’ve highlighted a few of our trusted partners who offer coverage for pet groomers:
| Provider | General Liability | Professional Liability | Business Owner's Policy |
|---|---|---|---|
| Embroker | ?? | ?? | ?? |
| CoverageSmith | ?? | ?? | ?? |
| CoverWallet | ?? | ?? | ?? |
| Hiscox | ?? | ?? | ?? |
| Thimble | ?? | ?? | ?? |
Final Word
Operating a pet grooming business can expose you to many potential liabilities, from accidental property damage to pet injuries. You can protect yourself and your business from the financial effects of these risks by purchasing comprehensive business insurance. With the right commercial insurance coverage, you can feel confident in the knowledge that your company would be able to cope with unexpected disasters or lawsuits.
