Pet stores inherently face various risks, from pet food recalls and accidental dog bites to injuries involving employees and customers. However, with $147 billion spent on pets in 2023, that risk may be worth the reward as a new pet store owner. So many different risk scenarios make comprehensive pet store insurance coverage essential for protecting your business and ensuring its longevity.
In this article, we’ll explore the five key insurance policies you need to consider as a pet store owner, with expert tips from Anne Russo, director of small business underwriting at Central Insurance.
5 Insurance Policies for Pet Store Owners
#1 – Pet Store Property Insurance Coverage Protects Your Physical Assets
If you’re among the 17,481 independent or franchised pet stores across America, your retail location offers a diverse range of products and live animals. These include dogs, cats, fish, birds, pet food, collars, leashes, shampoos, medications, toys, kennels, containers, and furniture. If something were to happen to all or part of your inventory, it would have devastating financial consequences for you and your employees. That’s where commercial property coverage steps in. It provides essential protection for your physical assets, including the building and its contents, in the event of disasters like fires, explosions, or strong winds.
“This is one of the most important types of pet store insurance coverage as it ensures that you won’t have to shoulder the financial burden of replacing lost or damaged items out-of-pocket,” Russo says. “In addition to inventory replacement, it can help with the costs to rebuild the store, reimburse suppliers, and assist with lost revenue.”
Learn More: How Does High-Risk Business Insurance Differ By Industry?
She also advises that during peak seasons like the holidays, when you may ramp up inventory, certain policies offer coverage for increased stock levels, providing added security when your shelves are at their fullest.
#2 – Be Prepared for Accidents With General Liability
When working with animals and the public, general liability insurance is a critical safeguard for pet store businesses. This coverage protects against lawsuits and potential financial damages from bodily injury, property damage, personal injury (such as libel or slander), or advertising injury. While most claims originate from incidents on the store premises, liability issues can also stem from completed grooming services or defective pet products.
Pet stores offering specialized services such as grooming, training, or daycare face additional risks.
“Make sure people bringing dogs in are controlling them and keeping them safely away from other dogs or people if needed,” Russo advises. “Having employees assist with movement through the store is key. Areas like grooming stations, where pet owners may observe services, can be high-risk zones if not properly managed. Keep these spaces clean and contained to prevent accidents.”
In most dog-bite cases, the pet owner is typically responsible for damages. However, this changes if the incident occurs in a pet store that allows free movement of animals. Victims of dog bites in such settings can choose to sue either the dog owner or the store owner. Commercial establishments like pet stores are expected to provide a safe environment for all visitors. If an accident occurs due to unsafe conditions or lack of adequate precautions, the store owner could be liable for related expenses.
Another notable risk for pet stores arises if a product is recalled, such as contaminated food leading to illness or a defective toy injuring a pet. Comprehensive liability coverage within your pet store insurance helps guard your financial stability and reputation against such unforeseen product issues.
If a product is indeed defective in some way and causes harm to an animal, your store will be protected. Russo advises pet store owners to stay informed about relevant product recalls and take proactive measures to ensure you’re not distributing recalled items, as they could harm or even kill an animal.
Did You Know? The first pet stores in the 1840s mainly sold birds.
#3 – Pet Store Insurance for Live Animals
If your pet store offers grooming, training, or daycare services, Central’s Animal Care Services Endorsement is invaluable as it provides coverage for animals in your care, custody, and control that belong to others. This policy protects you if an animal in your care is lost, injured, or passes away due to a covered incident.
Russo explains that this type of insurance allows pet store owners to assign a higher value to each pet, ensuring appropriate compensation if something goes wrong. Additionally, this coverage can extend to expenses such as advertising for lost pets or safely relocating animals during emergencies, offering comprehensive protection for your business and the pet owners you serve.
#4. Manage Workplace Risks With Pet Store Insurance
Pet stores employ more than 160,000 people nationwide. If your pet store employs staff, it’s essential to have insurance that shields you from claims related to wrongful termination, harassment, workplace injuries, or discrimination.
While these scenarios may seem rare, being prepared with appropriate coverage ensures you’re equipped to handle potential disputes. Workers’ Compensation is primarily managed at the state level and mitigates risk from financial losses associated with employee injuries. Most states advise employers with even a single employee—including part-time, full-time, seasonal, or family members—to carry this coverage.
One effective way to manage Workers’ Compensation costs is by implementing and continuously improving a workplace safety program. “The best strategy is to reduce workplace accidents that lead to claims,” Russo says. “The least expensive accident is the one that never occurs.”
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#5. Cybersecurity Insurance Defends Your Digital Assets
With pet stores relying more on digital systems for payment processing, inventory tracking, and managing customer records, the risk of cyberattacks continues to rise. Cybersecurity insurance provides vital protection against threats like data breaches, ransomware, and other cyber incidents that could compromise sensitive information or disrupt operations. This coverage is especially crucial for stores offering online ordering or appointment scheduling, as small businesses often lack dedicated IT departments to handle such vulnerabilities.
The Central Difference
Partnering with an insurance provider experienced in the pet care industry, such as Central, gives pet store owners the peace of mind for whatever challenges come your way. Russo emphasizes Central’s commitment to building strong relationships and offers hands-on support from experienced agents, underwriters, and claims specialists. Additionally, Central boasts a strong financial rating, reflecting its stability, reliability, and ability to consistently meet policyholder obligations and pay claims with confidence.
Figuring out exactly what policies you need can be a daunting task. Your local independent Central agent will go through the pet store insurance process with you step by step and help you determine your needs and how best to cover them.
