Are you preparing to sell your kennel in Nevada and wondering how to get top dollar?
Have you overlooked the role your insurance history plays in determining your business’s value?
When it comes to selling a kennel, most owners focus on profitability and operations. But there’s another asset buyers and their lenders are scrutinizing: your insurance portfolio. A clean claims history, comprehensive coverage, and well-documented risk management practices don’t just reduce buyer uncertainty. They can increase your selling price and ease the entire transaction.
In this guide, you’ll learn how to turn your insurance portfolio into a strategic advantage during your kennel sale. We’ll walk you through how to audit and strengthen your coverage, present it as a low-risk asset, and manage the transition process smoothly. Whether you’re planning your exit in a year or three, these steps can significantly boost your final valuation.
Why Insurance Matters When Selling Your Kennel
Insurance Reflects Operational Quality
Buyers don’t just acquire your assets. They also inherit your risks. A strong insurance history offers clear proof that your business has operated with care and diligence.
A clean claims history over three to five years is a buyer magnet.
It demonstrates that your facility is safe, your staff is well-trained, and your protocols are effective. Be ready to share a “loss run” report from your insurer. This official document validates your claim history and builds immediate trust with buyers and lenders.
Your insurance coverage also signals how sophisticated your business is.
Buyers want more than just General Liability. They expect to see:
- Animal Bailee Coverage with appropriate limits
- Workers’ Compensation proving employee protection
- Professional Liability (E&O) for service-related risk
- Employment Practices Liability (EPLI) guarding against internal disputes
- Cyber Liability for modern data risks
Presenting this kind of comprehensive portfolio tells a buyer that your business is well-managed, thoughtful, and prepared for a seamless transition.
Insurability Serves as a Third-Party Endorsement
For many buyers, especially those new to the pet care industry, your ability to secure solid insurance is a powerful validation. It shows that experienced underwriters have vetted your operation and deemed it a low-risk investment. That’s not just peace of mind. It is a green light for lenders and decision-makers.
How to Prep Your Insurance Portfolio for a Sale
If you’re planning to sell within the next one to two years, use this time to polish your insurance records and risk management practices. Think of it like staging a home. You want your business to shine under inspection.
1. Audit Your Current Coverage
Work with your broker to confirm that your limits reflect the size of your operation and the value of pets in your care. Being underinsured is a red flag.
2. Resolve Safety Issues
If any inspection recommended safety updates, complete them now. Buyers appreciate a clean inspection report that shows attention to detail.
3. Build a Risk Management Binder
Prepare a buyer-ready file (to be shared under NDA) with:
- Loss run reports from the past five years
- A summary of all current policies and limits
- Copies of safety manuals and employee training protocols
- Staff certifications and professional credentials
This level of organization builds credibility and speeds up due diligence.
Managing Insurance During the Transition
The closing phase of your sale is not the time to overlook key details. Insurance transitions must be handled correctly to avoid exposure.
Buyers Must Secure Their Own Coverage
Insurance policies are not transferable. Your buyer must apply for their own coverage, effective the day of closing.
You Can Support Their Underwriting Process
Providing documentation like loss histories and safety manuals helps your buyer secure coverage more quickly and affordably. This kind of support can keep your deal on track.
Keep Your Insurance Active Until Closing
Do not cancel your insurance early. Even a one-day lapse in coverage could expose you to a costly claim right before the deal is finalized.
Consider Tail Coverage for Added Protection
If you have any claims-made policies such as EPLI or Professional Liability, speak with your broker about tail coverage. This extends your protection in case a claim arises after the sale that relates to your time as owner.
Don’t Overlook Insurance. Use It to Maximize Your Exit.
Selling your kennel is more than a transaction. It is the financial culmination of years of work. Your insurance history is one of the few intangible assets that can directly increase buyer confidence and your final sale price. When you treat it like the asset it is, you make your business more attractive, more insurable, and more valuable.
You’ve built a low-risk, professionally run kennel. Let your insurance story prove it.
Let’s Make Your Coverage Buyer-Ready
Reach out to our Nevada kennel insurance experts to schedule a pre-sale insurance review. We’ll help you strengthen your risk profile and ensure your business is ready for a confident and profitable exit.
