Last Updated: February 23, 2024, 8:42 am by TRUiC Team

Pet Hotel Business Insurance

Getting insurance for your pet hotel business is essential.

Pet hotel businesses need to be protected against things like false advertising, negligence, and breach of contract. 

For example, if a client’s pet is injured as a result of your hotel business failing to satisfy the standard of care it owed, it could face a negligence lawsuit.

We’ll help you find the most personalized and affordable coverage for your unique business.

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Recommended: Next Insurance is dedicated to matching small businesses with the right policy at the best price.

Best Insurance for a Pet Hotel Business

General liability insurance is — generally speaking — one of the most important insurance policies for pet hotel businesses. 

Some of the risks general liability insurance covers are:

  • Bodily injury
  • Property damage
  • Medical payments
  • Legal defense and judgment
  • Personal and advertising injury

Since your pet hotel business is likely to face risks that extend far beyond the scope of general liability, it may be worth checking out some of the following extra policies:

  • Professional liability insurance: Covers any settlements of legal costs your pet hotel business may have to pay if it is sued for negligence.
  • Commercial property insurance: If a natural disaster, theft, or fire (among other risks) damages any property belonging to your business, this policy will cover the cost of replacing it.
  • Workers’ compensation insurance: An operational prerequisite for any business with full or part-time employees — which your pet hotel business will likely need.

Choosing an insurance provider can seem daunting, though the process is relatively straightforward. It is far simpler to think of providers as one of two primary types:

  • Traditional brick-and-mortar insurers — Describes firms like The Hartford and Nationwide.
  • Online insurers — Describes firms like Next and Tivly.

Each of these two types offers its unique benefits, though online insurers tend to be better suited to smaller firms due to the excellent value for money of their policies.

Let's Find the Coverage You Need

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Cost of General Liability Insurance

On average, pet hotels in America spend between $300 - $700 per year for $1 million in general liability coverage.

Compare the average cost of general liability insurance for a pet hotel business to other professional industries using the graph below.

Several factors will determine the price of your policy. These include your:

  • Location
  • Deductible
  • Number of employees
  • Per-occurrence limit
  • General aggregate limit

You may be able to acquire general liability insurance at a discounted rate by purchasing it as part of a business owner’s policy (BOP) rather than as a standalone policy.

A BOP is a more comprehensive solution that includes multiple forms of coverage, such as business interruption and property insurance.

Graph showing average price of general liability insurance prices per industry

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Find the Best Rate

Discover the best coverage at the lowest rate in our cheapest business insurance review.

Common Situations That General Liability Insurance May Cover for a Pet Hotel Business

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Example 1: During a tour of your facility, a pet owner slips while turning a corner, breaks a wrist as he falls, and demands your company pay for his medical treatment. General liability insurance would cover his medical expenses.

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Example 2: A competitor claims you libeled her pet hotel in your latest marketing campaign. While you disagree with the claim, you know you need a strong legal defense to protect your business. General liability insurance would pay for your legal fees and any required settlement.

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Example 3: While entering your pet hotel, a customer trips over some broken pavement, breaks an ankle, and decides to sue your business. General liability insurance would cover your legal defense and any required settlement.

Other Types of Coverage Pet Hotel Businesses Need

While general liability is the most important type of insurance to have, there are several other forms of coverage you should be aware of. Below are some of the most common types of coverage:

Professional Liability Insurance

While you strive to provide pet care services that satisfy your customers, there’s always a chance someone might decide your professional service caused them harm. If a customer sues your business for negligence, professional liability insurance would cover your legal fees and any required settlement.

Commercial Property Insurance

You made a major investment in your pet hotel, including equipment and supplies. In the event of a fire, theft, or natural disaster, commercial property insurance would cover the cost of repairing or replacing your business-related property. This includes structural damage to your building as well as the business materials stored there.

Workers’ Compensation Insurance

If you have any employees, most states will require you to carry workers’ compensation insurance for your part-time and full-time workers. This coverage protects your employees if they become injured at work or fall ill after a work-related accident. It not only covers an employee’s medical bills and lost wages if they need time to recover but also any disability or death benefits stemming from a workplace accident.

Commercial Umbrella Insurance

While your general liability insurance policy covers most claims, some accidents or lawsuits may be so catastrophic that they threaten to exhaust the limits of your primary coverage. Commercial umbrella insurance protects you from paying out-of-pocket for any legal fees and awarded damages that exceed your primary policy.

Additional Steps To Protect Your Business

Although it’s easy (and essential) to invest in business insurance, it shouldn’t be your only defense.

Here are several things you can do to better protect your pet hotel business:

  • Use legally robust contracts and other business documents. (We offer free templates for some of the most common legal forms.)
  • Set up an LLC or corporation to protect your personal assets. (Visit our step-by-step guides to learn how to form an LLC or corporation in your state.)
  • Stay up to date with business licensing.
  • Maintain your corporate veil.

Pet Hotel Business Insurance FAQ

Yes, absolutely. You will need to first get a quote from an online business insurance provider like Next Insurance. Next allows you to then purchase a policy immediately and your coverage will be active within 48 hours.

A typical business owner’s policy includes general liability, business interruption, and commercial property insurance. However, BOPs are often customizable, so your agent may recommend adding professional liability, commercial auto, or other types of coverage to your package depending on your company’s needs.

"Business insurance" is a generic term used to describe many different types of coverage a business may need. General liability insurance, on the other hand, is a specific type of coverage that business owners need to protect their assets.

Yes. It is important to make sure that your pet hotel business possesses adequate business insurance before it launches to guarantee maximum protection from the risks it will face.

However, aside from this, insurance serves another purpose: maintaining your business’s compliance with its state’s laws. This is due to the growing prevalence of legally mandated policies — like workers’ compensation insurance.

Not necessarily. Certain exceptions may be written directly into your pet hotel business insurance policy, and some perils may be entirely uninsurable.

Yes, an LLC is meant to create a legal barrier between your business and your personal assets and credit. If you haven’t formed an LLC yet, use our Form an LLC guide to get started.

An LLC doesn’t protect your business assets from lawsuits and liability– that’s where business insurance comes in. Business insurance helps protect your business from liability and risk.