Dog daycare centers are temporary housing for dogs whose owners are away on business or vacation. These businesses offer services that include feeding, exercise runs, grooming, breeding, or even training classes. Some also offer boarding facilities for cats or other domestic animals. However, there are crucial things you have to do if you expect to maintain a dog daycare business that will stand the test of time, and adequate insurance is one of them.

Dog daycare insurance is an insurance policy that safeguards your business from just about any liability or incident that may happen in the process of starting and running your business. It is sometimes referred to as animal boarding insurance or kennel insurance. This sort of insurance is designed to safeguard you as a business owner, your employees, your clients, and the animals.

In this line of business, there are a number of risks likely to occur and they may negatively affect your business. As a responsible business owner, you are more or less tasked with ensuring that your dog daycare runs successfully without issues.

Aside from certain risks that are common with almost any commercial venture in the United States, there are specific hazards faced by dog daycare facilities. Aside from the fact that assets and employees are at risk, pets brought in by clients are also at risk. Theft, vandalism, and accidents are few examples of things that could cause damage to your business. There is also a possibility that a dog or pet could get injured or even die in your care.

In addition, customers can file lawsuits alleging negligence even if your standard of care is excellent. Things like this can indeed cause serious expenses to your business, and in some cases, the costs would be so enormous that you may be forced to close your business. Therefore, purchasing in the right dog daycare insurance is the best way to prevent that scenario.

Basic Insurance Types for Dog Daycare Businesses

Agreeably, all businesses in this field will have similar insurance needs, however, individual circumstances will influence the exact kinds of coverage you need to best safeguard your interests, as well as the ultimate cost of any given policy.

These individual circumstances may include business location, the size of your business, the type’s dogs and animals you board, and the number of employees you have hired. Below are the different types of dog daycare insurance you will need and what they cover.

  1. General Liability

This sort of insurance is known to safeguard your dog daycare from any third-party claims coming from property damage or personal injuries. Simply put, this insurance covers lawsuits against your business filed by clients and against third-party claims such as a dog biting a customer or disinfectant chemicals accidentally spilling and ruining a designer bag of a client.

  1. Workers Compensation

Have it in mind that every state in the United States mandates businesses with employees to have this type of insurance. Workers’ compensation insurance is known to cover things like medical bills and lost income your employees may incur in the event of a workplace injury.

  1. Commercial Property

Commercial property insurance safeguards any and all physical assets of your dog daycare. Note that this may include kennels, grooming tables, and outdoor equipment, etc. This also includes your building and infrastructure. Have it in mind that this insurance is primarily meant to cover the cost of damage accrued by things like fires, explosions, and theft. Therefore, it will help you pay for the replacement or repair of your commercial property.

  1. Commercial Auto

Commercial vehicle insurance safeguards your business against third-party claims if you hit another vehicle or party while driving from location to location. Note that this insurance pays for damages and repairs to the vehicle and every other attached modification that happen in an at-fault accident or resulting from theft or vandalism.

This insurance is very necessary especially if you run a mobile dog grooming business. Even if your business does not own or lease a vehicle, non-owned auto coverage may be a good idea.

  1. Business Income

If there is a fire or an electrical explosion for example, your business may have to close for a few days or weeks. This type of insurance is meant to aid the repairs and also make up some of the income you might have lost in the time that your business has been closed.

Notably, business income is always critical and remains the bedrock of your business, especially in the early years. Note that you may not be generating a huge profit right away, therefore any lost income can force your dog daycare further into crisis.

  1. Animal Bailee

Animal bailee is a specific insurance that helps your dog daycare take care of the cost of treating or locating an injured or lost dog. If a client’s dog gets injured or lost while under your care, you will be tasked with paying some of the resultant expenses. Note that these fees may include veterinary bills as well as advertising or reward payments for lost dogs.

  1. Tenant Improvements

This insurance may not be mandatory, but can be very vital whether you own or lease your dog day care building. If you are leasing the space, then it is imperative you go over your lease to understand the kind of tenant improvements insurance you require.

Tenant improvement insurance is known to help businesses pay for any changes or renovations made in order to improve the building. These improvements may include, for example, replacing old pipes or installing a new HVAC system. It could also include renovations like adding a new bathroom or knocking down walls.

If you are leasing, have it in mind that the person tasked with paying for these kinds of improvements will depend on your lease. Also, note that it will depend on who technically “owns” the improvements as well as other factors you will have to reason out with your landlord.

  1. Employment Practice Liability Insurance

Note that this is the only coverage designed to safeguard you against claims of bad business practices, as opposed to injury or damaged property. Employment practice liability insurance is to be used in the event that an employee or client files a claim against your business for issues like discrimination, harassment, or wrongful termination.

Steps to Get Dog Daycare Insurance in 2022

Since understanding the intricacies of the modern insurance market can be confusing, it is always advisable to consult a commercial insurance broker to advise and advocate for you. Nonetheless, here are steps to take to get adequate insurance for dog daycare.

  1. Organize Your Paperwork Before Getting A Quote

First and foremost, it is imperative to arrange all the documents on your business incorporation, lease agreements, and revenues. If you have employees, take your time to organize your payroll records so you can obtain your quotes quickly with accurate information to avoid the frustration of making adjustments later. Have it in mind that a good number of liability policies are based on revenues and business property values while workers’ compensation is based on payroll data.

  1. Shop Rates Among Top Carriers

Note that even top insurance carriers all have different pricing for the same type of policy. Most times, it is due to the insurance carrier’s experience with that type of business. Have it in mind that leveraging an insurance broker helps you get apples-to-apples quote comparisons.

  1. Create Safety Protocols

Generally, insurance premiums are based on business risk, and a dog daycare comes with an extensive risk of injuries to people or animals. A good number of insurance companies offer better rating systems for small businesses that have written safety programs that are executed through documented training with employees. Don’t forget that fewer claims ensure that insurance costs are kept low and safety programs help limit excess claims.


Dog daycare insurance is a crucial business component covering accidents and losses that can occur when working with dogs. Dog bites, accidental slips leading to injuries, and vandalism or theft are risks every dog groomer faces. However, leverage the expertise of an experienced agent to help you decide which policies are ideal for your business and how much coverage you should receive.

Frequently Asked Questions

  1. What Is Covered Under The Dog Daycare Insurance Policy?

Dog daycare insurance is a type of business insurance designed for dog daycare and boarding small businesses. A dog daycare insurance policy should include coverage for two main types of liability: general liability and professional liability and dog daycare insurance can protect you from expensive litigation and losses stemming from injuries and other accidents.

  1. What Other Types Of Insurance Do Dog Daycare Businesses Need?

General liability and professional liability are two key forms of insurance you will want to have for your dog daycare business. Additional insurance policies you may want to consider include commercial property insurance, animal bailee, and workers’ comp.

  1. Why Do You Need A Dog Daycare Insurance Policy?

Dog daycare businesses need insurance policies because dog daycare involves significant risk. A dog under your care could get sick or injured in your care, or a dog bite could lead to a lawsuit.

  1. How Much Does Dog Daycare Insurance Cost?

Dog daycare businesses pay a median premium of about $40 per month, or $480 per year, for general liability insurance. This policy provides protection for accidental injuries to customers and their pets. It also covers slander, copyright infringement, and other advertising injuries.

  1. What Insurance Do Pet Groomers Need?

Public liability insurance is often an important cover for pet groomers, in case someone is injured or their property harmed because of your business.

  1. How Quickly Can I Get A Certificate Of Insurance From Thimble?

It takes less than a minute. You can have a Certificate of Insurance (COI) in your email inbox in under 60 seconds.

  1. What Types Of Insurance Do Kennels And Dog Day Care Facilities Need?
  • General liability insurance
  • Workers’ compensation insurance
  • Business owner’s policy.
  1. Can Unneutered Dogs Go To Daycare?

Yes, since kennels are separated, they will be able to admit unneutered dogs of any sex as well as aggressive ones. Loud and disturbing noise can make dogs anxious. If they weren’t introduced as pups, older dogs take time to settle in.

  1. What Insurance Do I Need As A Dog Walker?

As a dog walker, you will need public liability insurance to protect you should a member of the public get accidentally injured or their property is damaged by you or the dogs that you walk.

  1. How Much Space Do You Need For A Dog Daycare?

The ASPCA recommends a play area of around 75 to 100 square feet per dog. You will need at least two play areas, one for larger dogs and one for smaller breeds. For the large-breed play area, allocate space in line with the top end of the recommended scale.

  1. Who Needs Pet Care Services Insurance?

Every pet business needs to have general liability insurance to protect against claims arising from accidental injury to people or pets or accidental property damage. Make sure that you have the kind of liability insurance that covers damage to property as well as injury to people and pets.

  1. Do You Need Insurance To Board Dogs Or Other Pets?

Yes, and as a matter of fact, both full-time and part-time pet sitters need to have insurance to protect them against claims made by clients or third parties in the event of any accidental injuries or damage caused to their property.

  1. Do You Need A License For Dog Daycare UK?

It doesn’t matter if you run a boarding kennel or if you look after other people’s dogs in your own home, from October 2018 UK law says you MUST have a license. The regulations apply to boarding kennels, boarding catteries, caring for other people’s dogs in your own home, dog daycare, pet sales, and dog breeding.

  1. How Much Is A Dog Day Care License In UK?

It depends on the type because the new license application costs £570. Renewal of license cost £539. The mid-term license visit (recharged to the license holder) cost £157.

  1. How Much Does It Cost To Open A Dog Daycare?

The startup cost for opening a dog daycare depends on some factors such as Commercial Lease (per month), Facility Construction and Build out, Basic Equipment to Operate a Dog Daycare, location, size, and other factors. But over and above, you should be looking at spending nothing less than $10,000 to get it started.

  1. Why Invest In Pet Care Business Insurance?

Pet insurance business is one of the aspects of insurance that requires loads of effort to make tangible sales; this is especially if you are in an area where the concept is still very much new. However, the fact remains that it is a very lucrative business if you know how to go about it.

  1. How Much Does Pet Business Insurance Cost?

Pet care businesses pay a median premium of about $40 per month, or $480 per year, for general liability insurance. This policy provides protection for accidental injuries to customers and their pets. It also covers slander, copyright infringement, and other advertising injuries.

  1. What Insurance Should A New Dog Grooming Business Consider?

General Liability: This pet and dog grooming business insurance coverage protects against mishaps and resulting lawsuits that can occur at your business. For example, a customer slips and falls while in your parlor. General liability could help cover their medical expenses.

  1. I Am Also A Dog Walker, Do I Need A Separate Dog Walking Insurance Policy?

No, you do not because these activities both fall under Pet Services category (insurance policy cover).

  1. Should A Pet Sitter Have Insurance?

Experts highly recommend that pet sitters and dog walkers carry some form of Pet Sitting Insurance to help mitigate their risk. Pet Sitting Insurance can give you financial protection if an accident occurs and having insurance can also provide you, your staff members, and your clients’ peace of mind.

  1. How Do I Choose A Pet Business Insurance?

Choosing a pet business isn’t a decision to take lightly. Not only will you regularly make payments to the insuring body, but the coverage you choose could potentially save your business if you have any future conflicts.

Covering for pet injury, alleged mistreatment, runaway costs, or even veterinary treatment are all issues that other businesses usually don’t have to worry about. You want to choose an insurance provider that’s familiar with the pet care field and works with other businesses just like yours. You could choose a business that’s built on the pet care field, such as PetCare Insurance, or you could choose a general business insurance provider that fulfills your needs.

  1. How Can You Use Pet Care Software In Tandem With Pet Business Insurance?

Investing in a strong pet care management software from the start is invaluable in decreasing risk. With a platform like Gingr, you can:

  • Track vaccination records and is notified when a guest is due for updated shots.
  • Record staff notes about particular guests.
  • Maintain a clear picture of your scheduling abilities at any given moment.
  • Allow the online signing of waivers.
  • Ensure secure check-in and check-out of guests.
  1. Why Do Pet Boarding Businesses Need Insurance?

Pet boarding businesses need insurance policy cover because pet boarding involves significant risk. A pet could get sick or injured in your care, or an animal bite could lead to a lawsuit. Pet boarding or dog daycare insurance can protect you from expensive litigation and losses stemming from injuries and other accidents.

  1. What Are The Incident Cover Under Pet Professional Liability?

The following incidents would be covered under professional liability:

  • A dog is injured during grooming services.
  • Two dogs have an altercation in the exercise yard.
  • A dog runs away during an offsite walk.

Please note that if a client decides it is up to your business to cover vet bills or you have to hire representation in the event of a lawsuit, professional liability insurance becomes your saving grace. When it comes to this type of insurance, it is especially important to work with a company that’s familiar with the pet care industry.

  1. How Much Does Pet Care Business Insurance Cost?

Pet care businesses pay a median premium of about $40 per month, or $480 per year, for general liability insurance. This policy provides protection for accidental injuries to customers and their pets. It also covers slander, copyright infringement, and other advertising injuries.

  1. What Are The Benefits Of Having A Pet Insurance Cover For Your Pet Daycare Business?

The benefits of having pet business insurance are:

  • Clients trust your business to keep their pets safe.
  • Peripheral investors trust you to protect their investment.
  • Your staff is protected.
  • Your current and future assets are protected.
  1. How Much Does Dog Sitting Insurance Cost?

The most comprehensive insurance policies for dog sitters or those combined with bonding can run anywhere between $300 and $600 per year. Basic dog sitting policies can still be had for as little as $150 per year.

  1. What Are The Dog Daycare Insurance Liability Insurance Limits Under Thimble?

Thimble’s Dog Daycare Insurance comes with liability coverage limit options of $1 million and $2 million.

  1. What Are The Factors That Might Affect The Cost Of Pet Business Insurance Plan?

Some factors that might affect the cost of your pet business insurance plan are:

  • The size of your business.
  • The type of business you operate (daycare, kennel, groomer, etc.).
  • The services you provide (training, overnight care, walks, home visits).
  • The location that your business is located in.
  • The level of coverage you believe is necessary.