Pet Store Insurance Policy Information
Pet Store Insurance. Pet stores sell pets and related supplies including pet food, collars, leashes, habitats, clothing and pet toys. Some offer animals such as cats or dogs, while other offer more exotic animals, such as rare birds, rodents, fish, spiders and snakes.
Related services that may be offered include kenneling, grooming, and veterinary care. Some pet stores offer adoption programs in conjunction with local animal shelters or sponsor exhibitions or competitions.
You've chosen a truly special industry, one that supports and nurtures the joy and companionship of pet ownership. Through your pet store business, your customers trust you to provide them with safe products and responsible grooming services that leave everyone happy and healthy. But your pet store gets its the life from something else. The pets themselves.
And while pets give a certain magic to the pet store environment, they also add a lot of complexity and a significant amount of risk. The injury or death of one of the pets can be tragic and costly, putting your pet store business at great risk for survival. This makes pet store insurance a huge necessity for your business.
Pet store insurance protects your shop from lawsuits with rates as low as $37/mo. Get a fast quote and your certificate of insurance now.
Below are some answers to commonly asked pet shop insurance questions:
- What Is Pet Store Insurance?
- How Much Does Pet Store Insurance Cost?
- Why Do Pet Stores Need Insurance?
- What Type Of Insurance Do Pet Stores Need?
- What Does Pet Store Insurance Cover & Pay For?
What Is Pet Store Insurance?
Pet store insurance is a type of insurance policy that provides coverage for pet store owners and employees against financial losses, property damage, and liability claims.
This insurance typically includes coverage for employee injuries, theft, damage to inventory and equipment, and customer accidents that occur on the property. It can also provide protection against lawsuits arising from the sale or care of animals, such as animal bites, and veterinary expenses.
Pet store insurance policies may be customized to meet the specific needs of the business and can provide peace of mind to pet store owners and employees.
How Much Does Pet Store Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small pet stores ranges from $37 to $59 per month based on location, size, payroll, sales and experience.
Why Do Pet Stores Need Insurance?
pet store insurance offers protection from a wide range of risks and exposures that could potentially impact your business and ability to operate.
It's essential to ensure you have the right protection in place to safeguard the pets, buildings, contents, stock as well as your liability towards staff, customers and suppliers.
Without the right pet store insurance coverage in place, you may be personally liable for accidents that occur, which could also jeopardize the future of your business.
What Type Of Insurance Do Pet Stores Need?
General Liability: pet store owners purchase this insurance to provide coverage for legal hassles due to claims by customers. This policy protect against payments as the result of bodily injury as well as property damage. If someone tripped over spilt animal feed in your shop and claimed compensation for their injury, pet store insurance pays for medical expenses, lawsuit defense costs, and settlement bonds or judgements during an appeal procedure.
Another example, let's say that one day a customer is in your store for a routine visit. The night before the visit, your cleaning crew left a very slippery floor and didn't use non-skid wax. The customer is walking around your premises when they suddenly trip and fall. General Liability Insurance will pay for legal defense if the customer decided to bring a lawsuit against you for their injuries.
Business Property: Research places the average cost of fire for small businesses at $35,000. If you do not have this kind of cash lying around, property insurance is a no-brainer. If certain disasters and weather events strike, pet store insurance will cover the cost of making repairs and replacement to your property. Burglary is yet another common pet store claim, so chances are you need the coverage commercial property offers.
Inland Marine: This protects you against losses related to animal mortality. A broker can help you determine whether this coverage is a good fit for you, as may be the case if you keep highly valuable breeds.
Bailee Insurance: If your pet store offers veterinary, grooming or kenneling services, you need Bailee insurance. This pet store insurance provides coverage for pets belonging to other people but left in your care, custody or control.
Commercial Auto: Driving for business is riskier than personal auto use - especially if it requires picking up or delivering pets or expensive products.
Worker's Compensation: Worker's compensation is required in most states for any non-owner employees and is an important pet store insurance policy for pet shops to have. Your employees are at risk of falling inside the shop or getting injured by your pets. If they get a work-related injury, the diagnosis and treatment will be covered by worker's compensation insurance. The policy also covers recovery, physical therapy, and any lost income while they are out of work.
Commercial Flood Insurance: Business insurance policies don't include coverage for damages caused by floods. Because floodwaters can cause extensive damage, it is important that you look into supplementing your policy with commercial flood insurance if you are in or near a flood zone.
Pet Shop's Risks & Exposures
Animal mortality exposure is unique to pet stores and pet care operations. Animals can escape, be injured by employees, customers or other animals, or contract disease. Others need controlled environments, such as tropical fish, that require backup power facilities should power outages occur.
Premises liability exposure comes from slips and falls due to public access to the premises. Aisles must be adequate and free of debris with flooring in good condition with no frayed or worn spots on carpet and no cracks or holes in flooring. Pet "accidents" must be quickly cleaned up to prevent slips and falls. Steps and uneven floor surfaces should be prominently marked. Sufficient exits must be provided and be well marked with backup lighting systems in case of power failure.
All goods should be kept on easily reached shelves so that customers do not pull down items on themselves. Interaction of the store's pets offered for sale and customers can create injury due to bites, pecks, or scratches. In addition, some stores encourage owners to bring their animals to the premises, which increases liability if not well controlled. Visiting animals should be leashed and remain with their owners at all times. Pet grooming, kenneling and veterinary care will increase the number of visitors.
Animal rights demonstrations may be a concern if the store sells puppies, particularly when the animals are purchased through "puppy mills."
Parking lots and sidewalks need to be in good repair with snow and ice removed, and generally level and free of exposure to slip and fall. If the business is open after dark, there should be adequate lighting and appropriate security for the area.
Personal injury exposures are from apprehending and detaining shoplifters. Shoplifting procedures must be fully understood and utilized by all employees.
Products liability exposure is normally low unless animals, pet food and supplies are imported. These should come from a domestic-based wholesaler. Professional services must be carefully evaluated as any injury or loss to a high-value animal may result in expensive claims. It is important to remember that death or damage to pets are not bodily injury claims, but are property damage claims.
Workers compensation exposure is from lifting which can cause back injury, hernia, sprains, and strains, and from slips and falls. Employees have animal-related exposures including bites, pecks, scratches, and diseases that may be transmitted to humans. Employees should be provided with safety equipment, trained on proper handling techniques, and have conveying devices available to assist with heavy lifting. Shelves should be easily accessible for storage.
Housekeeping in storage areas, especially during peak times, is vital to prevent trips and falls. As with any retail operation, hold-ups may occur. Employees should be trained to respond in a prescribed manner. Drivers of delivery trucks can be injured in accidents.
Property exposure ignition sources are generally limited to electrical wiring and heating and cooling systems. Animal stock is sensitive to fire, smoke, and water. Should even a small fire occur, the store could incur a large loss if the animals or fish must be destroyed. Other than the animals, the stock is not highly damageable. The theft exposure is limited unless the shop deals in rare or specialty items.
Business interruption is a concern because sales may peak at particular times during the year and sought after items and some types of animals may not be quickly replaceable.
Crime exposures are from employee dishonesty and theft of money and securities either from holdup or safe burglary. Background checks should be conducted on all employees handling money. There must be separation of duties between persons handling deposits and disbursements and handling bank statements. Money should be regularly collected from cash drawers and moved away from the collection area, preferably to a safe on premises. Bank drops should be made throughout the day to prevent a buildup of cash on the premises.
Inland marine exposures are from accounts receivable if the store offers credit, bailees customers if the store offers grooming or kenneling services for customers' animals, computers to transact sales and monitor inventory, and valuable papers and records due to customers' and vendors' records. Backup copies of all records, including computer records, should be made and stored off premises. If the store attends exhibitions or sponsors events, there may be a goods in transit exposure.
Business auto exposure is generally limited to hired and non-owned for employees running errands. If the pet store offers pickup or delivery of animals for services such as pet grooming or veterinary care, anyone who uses a vehicle must have a valid license and acceptable MVR. Vehicles should have regular maintenance with records kept.
What Does Pet Store Insurance Cover & Pay For?
Pet stores can be sued for a variety of reasons, including:
Negligence: If a pet store fails to provide adequate care for an animal or sells an animal with a health problem, they may be sued for negligence. A pet store can obtain a commercial general liability (CGL) insurance policy that includes coverage for negligence. If a customer sues the pet store for negligence, the insurance policy can help pay for legal fees, settlements, or judgments.
Personal injury: If a customer or visitor is injured on the pet store premises, such as being bitten by an animal, they may sue the pet store for personal injury. A CGL insurance policy can also provide coverage for bodily injury or property damage that occurs on the pet store premises. If a customer sues the pet store for personal injury, the insurance policy can help cover the costs of the lawsuit.
False advertising: If a pet store misrepresents the breed, age, or health of an animal, a customer may sue them for false advertising. A CGL insurance policy can also provide coverage for claims of false advertising. If a customer sues the pet store for false advertising, the insurance policy can help pay for legal fees, settlements, or judgments.
Breach of contract: If a pet store fails to deliver an animal as promised, or fails to honor a warranty or return policy, they may be sued for breach of contract. A pet store can obtain a commercial property insurance policy that covers losses resulting from breach of contract. If a customer sues the pet store for breach of contract, the insurance policy can help cover the damages.
In addition to these types of insurance, pet stores may also want to consider obtaining coverage for animal care, such as pet grooming, boarding, or training. By obtaining the appropriate insurance coverage, pet stores can ensure that they are financially protected in the event of a lawsuit.
Commercial Insurance And Business Industry Classification
- SIC CODE: 5999: Miscellaneous Retail Stores, Not Elsewhere Classified
- NAICS CODE: 453910 Pet and Pet Supplies Stores
- Suggested Workers Compensation Code(s): 8017 Store - Retail NOC
5999: Miscellaneous Retail Stores, Not Elsewhere Classified
Division G: Retail Trade | Major Group 59: Miscellaneous Retail | Industry Group 599: Retail Stores, Not Elsewhere Classified
5999 Miscellaneous Retail Stores, Not Elsewhere Classified: Establishments primarily engaged in the retail sale of specialized lines of merchandise, not elsewhere classified, such as artists'supplies; orthopedic and artificial limbs; rubber stamps; pets; religious goods; and monuments and tombstones. This industry also includes establishments primarily engaged in selling a general line of their own or consigned merchandise at retail on an auction basis. Establishments primarily engaged in auctioning tangible personal property of others on a contract or fee basis are classified in Services, Industry 7389.
- Architectural supplies-retail
- Art dealers-retail
- Artificial flowers-retail
- Artists'supply and material stores-retail
- Auction rooms (general merchandise)-retail
- Autograph and philatelist supply stores-retail
- Awning shops-retail
- Baby carriages-retail
- Banner shops-retail
- Cake decorating supplies-retail
- Candle shops-retail
- Coin shops-retail, except mail-order
- Cosmetics stores-retail
- Electric razor shops-retail
- Flag shops-retail
- Gem stones, rough-retail
- Gravestones, finished-retail
- Hearing aids-retail
- Hot tub-retail
- Ice dealers-retail
- Monuments, finished to custom order-retail
- Orthopedic and artificial limb stores-retail
- Pet food stores-retail
- Pet shops-retail
- Picture frames, ready-made-retail
- Police supply stores-retail
- Religious goods stores (other than books)-retail
- Rock and stone specimens-retail
- Rubber stamp stores-retail
- Sales barns-retail
- Stamps, philatelist-retail: except mail-order
- Stones, crystalline: rough-retail
- Swimming pools, home: not installed-retail
- Telephone stores-retail
- Tent shops-retail
- Trophy shops-retail
- Typewriter stores-retail
- Whirlpool baths-retail
Pet Store Insurance - The Bottom Line
Most animal lovers think there couldn't be anything better than running a pet shop, however if this is what you do for a living you know that it comes with its own stresses! Even though working with pets can be extremely rewarding - especially when you find them a new home - you still need insurance to protect your pet store business from the various risks you face daily.
Additional Resources For Retail Insurance
Read valuable small business retail insurance policy information. In a retail business, you need to have the right type of commercial insurance coverage so that your store, employees, and inventory are protected.
- Adult Novelty
- Antique Dealers
- Appliance & Electronics Store
- Army Navy Surplus Stores
- Art Dealers
- Art Gallery
- Arts & Crafts Supply Stores
- Bicycle Shop
- Boat Dealers
- Book Store
- Bridal Shop
- Candy Confectionery Store
- Carpet Store
- Cell Phone Stores
- Clothing Store
- Collectibles Memorabilia Store
- Consignment Stores
- Convenience Store
- Cosmetics Store
- Costume Stores
- Dry Cleaning
- Embroidery Services
- Equipment Rental
- Fabric Stores
- Fish Markets
- Flea Markets
- Funeral Home
- Furniture Store
- Gift Store
- Greeting Card Stores
- Hardware Store
- Harness & Saddle Shops
- Home Improvement Store
- Infant, Baby & Children's Clothing Stores
- Jewelry Store
- Lamp Stores
- Lingerie Store
- Luggage Store
- Meat Market & Butcher Shop
- Men's Clothing Stores
- Music Store
- Office Supply Store
- Paint & Wallpaper Store
- Pawn Shop
- Pet Store
- Pharmacy Liability
- Plumbing Supplies Fixtures Store
- Poultry Dealers
- Rent To Own Stores
- Scrap Metal Dealers
- Sewing Store
- Shoe Store
- Sporting Goods Store
- Stationary Store
- Thrift Store
- Ticket Agency
- Tire Store
- Tobacco Store
- Toy Store
- Travel Agency
- Trophy Stores
- Tuxedo And Formal Wear Rental Store
- Vending Machine Operators
- Wig Store
- Women's Clothing Stores
- Specialty Retail Stores
The retail industry is a vital sector of the economy, providing goods and services to consumers across the globe. It is also a sector that is constantly evolving, with new technologies and trends emerging on a regular basis.
Despite its importance, the retail industry is not without its risks. Retail businesses face a variety of threats, including theft, damage to property, and liability issues. These risks can have significant financial consequences for retail businesses, which is why commercial insurance is so important.
Insurance can provide retailers with protection against financial loss resulting from unforeseen events. For example, if a retail store is damaged by a natural disaster, insurance can help cover the cost of repairs and help the business get back on its feet. Similarly, if a retail employee is injured on the job, insurance can help cover their medical expenses and any lost wages.
In addition to protecting against financial loss, commercial insurance can also help retail businesses protect their reputation. If a retail business is sued or faces other legal challenges, insurance can provide financial support and legal representation. This can help to protect the business's reputation and maintain customer trust.
Overall, insurance is an essential component of a successful retail business. It helps to safeguard against financial loss and protect against potential legal challenges, which can be especially important for smaller businesses that may not have the resources to absorb these types of losses.
By investing in business insurance, retail businesses can ensure that they are well-equipped to handle the many challenges that come with operating in this dynamic industry.
Minimum recommended small business insurance coverage: Business Personal Property, Business Income and Extra Expense, Equipment Breakdown, Employee Dishonesty, Money and Securities, Accounts Receivable, Computers, Valuable Papers and Records, General Liability, Employee Benefits, Umbrella, Hired and Non-owned Auto & Workers Compensation.
Other commercial insurance policies to consider: Building, Earthquake, Flood, Leasehold Interest, Real Property Legal Liability, Computer Fraud, Forgery, Bailees Customers, Goods in Transit, Jewelers Block, Cyber Liability, Employment-related Practices, Business Auto Liability and Physical Damage and Stop Gap Liability.