If you operate a pet boarding or daycare facility, you’re facing more than just playful animals and daily routines. You’re managing liability risks that could cost thousands—or even shut your business down. From dog bites to lost pets to cyberattacks, today’s pet care professionals face serious exposure every day they’re open.
This guide explains the specific insurance coverage types every facility should consider. You’ll also learn how much these policies typically cost, what they protect you from, and how to evaluate your options. Whether you’re just starting out or reviewing your current policy, understanding this information can make or break your business’s financial future.
Why Pet Boarding Facilities Face Unique Risks
Pet care is inherently unpredictable—and that unpredictability can lead to devastating costs.
Unlike most businesses, you’re responsible for living creatures, each with its own temperament, medical needs, and behaviors. Even under the best supervision, injuries, escapes, and accidents happen.
- A facility in California faced over $18,000 in property damage from one dog.
- In Seattle, a $10,000 claim followed a tragic vehicle accident involving a pet in transit.
- The most frequent claims? Injuries, illnesses, or deaths that occur while animals are in your care—regardless of fault.
These examples aren’t anomalies. They reflect everyday risks. Claims for swallowed objects, dog fights, or escaped pets are not just possible—they’re common.
The Four Essential Insurance Types for Pet Care Providers
1. General Liability Insurance: Your Foundational Protection
General liability insurance covers injuries or property damage involving clients, visitors, or third parties.
If a pet owner slips in your lobby or a staff member accidentally damages someone’s property during a home visit, this policy protects you. Most policies include limits of $1 million per occurrence and $2 million in aggregate annually.
Common claim types:
- Dog bites to non-employees
- Slip and fall incidents
- Water damage from burst pipes
Expect to pay $600 to $1,000 annually depending on location and facility size.
Note: This policy does not cover injuries to animals in your care. That’s a separate form of protection.
2. Professional Liability Insurance: When Services Go Wrong
This coverage addresses claims tied to how you deliver pet care—not just accidents.
If you feed a dog the wrong food, fail to administer medication, or allow a preventable fight between pets, professional liability insurance is what protects you.
It typically covers:
- Errors in feeding, grooming, or care instructions
- Supervision failures during group play
- Injuries during off-site walks
Like general liability, expect $1 million per occurrence as a standard limit. Policies often include legal defense, which is vital in emotionally charged cases involving pets.
3. Property Insurance: Protection for Your Facility and Equipment
Property insurance safeguards your physical space, supplies, and operating equipment.
This includes coverage for:
- Building structures and improvements
- Kennels, grooming stations, HVAC, and cleaning systems
- Office tech and business personal property
It also helps in disaster scenarios—fires, storms, or break-ins—plus includes business interruption coverage to replace lost income during downtime.
Expect annual premiums between $800 and $2,500 depending on size, region, and risk factors.
4. Care, Custody, and Control Insurance: The Most Critical Coverage You’ll Carry
Animal bailee insurance protects you from claims involving injury, illness, or death of pets in your care—even when no one is at fault.
This is the most frequently used insurance policy in the pet care industry. Why? Because animals get sick, get hurt, and get into things—fast.
Covered claim examples:
- Dog-on-dog aggression
- Pets swallowing harmful items (e.g., medication, toys)
- Vehicle incidents during transport
- Lost pets injured while on the run
Most policies offer $1,000–$10,000 in coverage per incident. Given how often these claims happen, it’s non-negotiable coverage for responsible operators.
Other Critical Insurance You Shouldn’t Ignore
Workers’ Compensation Insurance
If you have employees—even part-time—you likely need workers’ comp. It covers staff injuries from:
- Dog bites or scratches
- Slips and falls during walks
- Repetitive motion injuries from cleaning or lifting
This policy is required in most states and helps protect both your team and your finances.
Cyber Liability Insurance
Even pet businesses store sensitive data. Cyber policies cover:
- Client data breaches
- Payment fraud
- Ransomware attacks
With digital bookings, automated systems, and payment processors, this is no longer a luxury—it’s a necessary shield.
Product Liability Insurance
If you sell pet food, toys, or grooming products, you may be liable for any harm caused by those items. Even if you didn’t make them.
Product liability insurance helps in situations like:
- Defective leashes or collars
- Treats that cause allergic reactions
- Toys that break and lead to choking
Don’t assume your supplier’s coverage will protect you—it often won’t.
Real Insurance Claim Costs: What to Expect
Even small incidents can add up to thousands in liability.
Some real-world examples:
- $2,500: Dog ate medication while unsupervised
- $2,100: Surgery after palm seed ingestion
- $4,000+: Lost pet injured by a wild animal
- $13,000: Dog bite to another dog
These aren’t edge cases—they’re regular occurrences in pet care operations.
What Insurance Will Cost You (And Why It’s Worth It)
Most pet care businesses pay $1,000 to $5,000 annually for comprehensive coverage.
While costs vary based on facility size, services offered, and location, the investment is modest compared to the financial—and reputational—damage a single claim can cause.
Bundled insurance packages often include:
- General liability
- Professional liability
- Care, custody, and control
Standalone policies like workers’ comp, cyber, or property insurance are priced separately but can often be integrated.
How to Choose the Right Insurance Provider
Not all insurance carriers understand pet care.
Look for:
- Experience in animal-related policies
- Legal defense support for emotionally sensitive claims
- Flexibility to cover grooming, training, or transportation if applicable
Specialty providers often offer better pricing, more relevant protection, and faster claims processing.
Taking the Next Step
Running a pet boarding or daycare facility means taking responsibility for more than daily feeding and playtime. It means protecting your clients, your business, and the animals in your care against the unpredictable—and sometimes tragic—moments that can happen in seconds.
You now have a clear understanding of the types of insurance you’ll need, the real-world risks you face, and what coverage will likely cost. Your next move is to evaluate your current insurance portfolio—or, if you’re just starting out, begin building one from the ground up.
Start by identifying:
- Gaps in your existing coverage
- Services you offer that may not be insured
- The real risks your facility faces based on claims history and staff feedback
When you’re prepared, insurance stops being a cost center and becomes your most valuable safeguard.
Get Protected—Before the Unexpected Happens
Accidents happen fast in pet care. Make sure your facility is fully covered.
