Business insurance is an important investment for kennels since it protects the financial assets of the business owner.
This article will discuss the primary insurance coverage for kennels, general liability insurance, as well as additional products that are appropriate for this industry.
Kennels Need General Liability Insurance
Every firm, regardless of sector, has risks that should be insured. General liability insurance is the most frequent and comprehensive form of coverage that company owners purchase.
General liability insurance covers the following risks:
Physical harm
Damage to property
Medical expenses
Legal defence and decision
Personal and commercial harm
While general liability insurance is not legally needed for companies, operating without it is exceedingly dangerous. If your company is sued, you might face costs in the hundreds of thousands of dollars (or more). The only way to avoid this sort of catastrophe from destroying your organisation is to have an adequate general liability insurance coverage in place to assist pay for these losses.
Common Situations That A Kennel’s General Liability Insurance May Cover
Example 1: A dog in your care consumes the incorrect food, has an allergic reaction, and asphyxiates while personnel are busy caring for other pets. The owner of the dog sues your company for damages, including the loss of a valuable breed and psychological trauma. If found accountable, general liability insurance would most likely be able to assist compensate these damages, whether mandated by a court or privately agreed upon.
Example 2: While a kennel space is being cleaned, the resident dog is temporarily put in the caged area of another dog. The dogs seem amicable at first, but then start fighting. One of the dogs has serious injuries and need quick medical treatment. If found accountable, your company may be paid by general liability insurance for medical expenses or a settlement with the owner of the wounded dog.
Example 3: When a dog’s owner returns, it acts erratically in the passenger seat as they drive away from your kennel. The owner’s view is obscured in your parking lot when the dog leaps onto her lap, leading her to crash with a passing car. If your company is held accountable for any vehicle damage or occupant injuries, general liability insurance will most likely help cover part of the payments required or settlements made.
Of course, this is not an entire list of risks covered by a general liability insurance policy, and certain situations may result in a specific peril not being covered. To minimise coverage gaps, it’s always better to speak with your agent about the terms of your policy.
General Liability Insurance Cost
The typical American kennel pays $300-$700 per year for $1 million in general liability coverage.
The cost of your coverage will be determined by a number of variables. Among them are your:
Location
Deductible
Employees’ number
Per-occurrence restriction
The overall aggregate limit
You may be able to get general liability insurance at a lower cost if you buy it as part of a business owner’s policy (BOP) rather than as a separate policy. A business interruption policy (BOP) is a more complete option that covers numerous types of coverage, such as business interruption and property insurance.
Other Kinds of Coverage Kennels Require
While general liability insurance is the most crucial, there are various different types of coverage to be aware of. Other forms of insurance that all kennels should have include:
Insurance for Commercial Property
A kennel is stocked with animal care supplies such as food, animal soaps, toys, mobile kennel containers, and more. While the protection of the animals is the first concern in instances of damaging fires or harsh weather, your company should still be secured against catastrophic property loss. This is an insurance that will be helpful for companies seeking to recuperate big damages, especially if you own the commercial real estate on which your firm runs. In the case of unforeseen loss, commercial property insurance helps cover the expenses of replacing/repairing inventory, equipment, real estate, and other assets.
Umbrella Insurance for Businesses
Commercial umbrella insurance is a vital coverage to get for a company that works on commercial property and cares for the cherished pets of its loyal customers. When calamity strikes, a kennel stands to lose a lot of money. When the cost of the coverage is just too high for standard insurance plans, a kennel might find itself in significant problems between replacement expenses and damage compensation for injured/deceased animals in its care.
Commercial umbrella insurance exists to fill the gaps left by current coverage, ensuring that your kennel company is not devastated by a catastrophic and unforeseeable loss.
Coverage Options for Some Kennels
In addition to the insurance listed above, your kennel may need other forms of coverage based on particular parts of your business. Some of them may not apply to you, so be sure to ask your agent whether policies are appropriate for your company.
Insurance for Commercial Vehicles
Some kennels are more engaged, bringing dogs on short outings or to special activities to keep them happy and active. You’ll need commercial cars if your kennel wishes to provide dog walking or park play as a service. This insurance coverage will pay for automotive repairs if your pet van or similar vehicle is damaged on the road.
Insurance for Home-Based Businesses
If you operate your kennel company from home, it’s a terrific method to save money on the price of renting/acquiring a place of business, particularly for a firm with such strict requirements for its operation grounds. However, if you conduct a company from home, your standard house insurance plans may not cover business-related accident damages. Home-based business insurance is developed with this in mind, and it is often offered as a rider extension to current homeowner insurance or as a company owner’s policy.
Additional Security Measures for Your Company
Although investing in company insurance is simple (and necessary), it should not be your first line of defence. Yes, insurance will reimburse your company for cash losses incurred as a result of an occurrence, but it is much preferable to avoid losses altogether.
With this in mind, here are a few steps you can take to better secure your company:
Make use of legally binding contracts and other business agreements. (We provide free templates for several of the most often used legal forms.)
To safeguard your personal assets, form a limited liability company (LLC) or a corporation. (To discover how to incorporate an LLC or company in your state, see our step-by-step tutorials.)
Keep your company licences up to date.
Streamline the internal procedures of your company. This will eliminate unneeded variables from routine activities and establish a secure, consistent environment in which to do business.
If your company is an LLC, you should check into LLC insurance.