Insuring an animal grooming/ care establishment can be somewhat challenging. Not many insurers are interested in providing protection for this somewhat risky class of business. In general, rating and acceptability of coverage for animal grooming and care establishments are based on the size of operations, extent of care offered, and type of animals serviced.

Types of Insurance Needed by Animal Grooming and Care Establishments

Animal grooming and care businesses are similar to other businesses when it comes to their needs for property, workers compensation, business auto and umbrella coverage. However, their needs of commercial general liability and professional liability are unique.

Animal grooming and care businesses need property coverage to protect their building (if owned), their office equipment and tools, as well as other coverage such as money and security, business income, signs, and more. If the business provides services  at remote client locations, special inland marine coverage is needed to cover their grooming and care tools.

Animal grooming and care services need a legally mandatory coverage of workers compensation. The projected premium is based on the projected annual payroll of the staff. Rates are not based on the number of employees. Workers compensation for animal grooming offers medical payment benefits and disability income benefits, as well as other benefits, for work related injuries of the staff.

Business auto is coverage for the business vehicles that the grooming establishment is using to transact business. The price is based on amount and type of insurance, garaging ZIP code, as well as age and driving experiences of drivers.

The umbrella coverage for animal grooming and care will raise liability limits on all liability policies, including auto liability, general liability and workers compensation. Umbrella is good choice for well established larger size firms to better protect their assets and business investments.

General liability covers the establishment for any bodily injuries and property damage that the negligent acts of the business or its employees cause to the public against certain risks. It includes premises liability (slip and fall), product liability, personal and advertising injuries, and medical payment coverage. As in other businesses, commercial general liability does not provide any professional liability coverages.

Professional liability is an essential coverage for animal grooming and care services. It covers the establishments against property damage and injuries to animals, for erroneous services rendered. As stated earlier these risks are not covered under the general liability policies. Live Animal Floater is a coverage that is aimed at covering the animals in the custody and care of the business.

Pricing and acceptability  for commercial general liability and professional liability are  based on several factors including:

1. Nature of business. Whether it is a veterinarian service, grooming service, or any other service, insurance companies offering coverage want to know the exact nature of business. Companies want to know if  services are offered  for the training of attack dogs, animal obedience training, or similar programs. Also dealing with thoroughbreds, exotic or rare animals, commercial ranching will make a difference in the rate and acceptability.
2. Size of operations. Generally, larger businesses are sued more often than smaller ones and, therefore, they pay more for insurance. Size of operations is measured by either annual receipts or annual payroll. Some insurers will consider both. Any payments made to subcontracted accounts will be counted as regular payroll unless the subcontractors demonstrate that they have similar insurance.
3. Professional and business experience of the staff expressed in terms of years of experience, education, professional licensing, prior insurance losses, and related matters.
4. Limits of coverage. Higher limits means more premium money.

For more information or to get a free insurance quote for Animal Grooming And Care, click on the link or call us at 708 233-4848.
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