If you run a pet store, you are all too familiar with the many ways things can go wrong. When you are working with live animals, there is an element of unpredictability that keeps you on your toes, while customer interactions and daily operations introduce plenty of other potential risks. When the worst happens, having the right insurance provider can often transform an event that could have ended your business into a minor stumbling block.
Unfortunately, some insurance providers are better than others, and the most affordable option isn’t always the best choice for your business. Don’t opt for a generic business policy with a “pet store” label added to it for marketing purposes; look for an insurer who actually understands your specific risks. Here are some tips for finding the right provider for you.
Essential Takeaways:
- Take time to evaluate the insurance provider’s experience with pet retail businesses.
- Explore the specific coverage types pet stores need beyond basic liability.
- Ask potential providers questions about pet store coverage before signing any contracts.
- Be aware of red flags that signal you should look elsewhere.
- Know how to compare quotes without sacrificing necessary protection.
Check Their Experience With Pet Retail Businesses
First, it is important to recognize that insurance agents who have worked only with restaurants or retail clothing stores may not fully understand the risks associated with pet stores. Live animal inventory, specialized equipment, and grooming services create significant exposures that standard commercial policies may overlook.
Be sure to inquire with the insurance providers you are considering about how many pet stores they currently insure. A provider with genuine pet retail experience will understand essential protections, including animal mortality coverage, grooming liability, and the specific concerns surrounding exotic animals. They will also understand local and state regulations that affect pet stores differently from other retail operations.
Verify They Offer Complete Coverage Options
General liability insurance alone is not enough for pet stores. The minimum coverage package should include not only property insurance for your building and inventory, but also general liability coverage for customer injuries and product liability for the pet supplies you sell.
Find out if the provider offers animal mortality coverage. If you offer grooming services, you will also need specific coverage for them. Don’t forget about employment practices liability if you have staff.
Understand Their Claims Process Before You Need It
Ask potential providers how they handle claims. Will you have a dedicated claims representative, or will you be dealing with a different person every time you call? How long is your average turnaround time for processing claims? Do they have a 24/7 claims hotline, or can you only speak with someone during business hours?
Some providers are notorious for denying claims over technicalities, so ask them for information about their claims denial rate. It is also useful to understand how long they take to process claims.
Compare Price Against Value, Not Just Price Against Price
You probably advise your customers not to shop for pet food based on price alone, and this is essential wisdom you should keep in mind when it comes to buying insurance. While cost is an important factor, keep in mind that the lowest premium often has higher deductibles, lower coverage limits, or more exclusions. This will not save money in the long term when claims arise.
Assess Their Customer Service and Responsiveness
How fast does the insurance provider you are considering reply to your inquiries? Are they reachable when you need to talk to them, or do you find yourself spending half the day playing phone tag?
One way to test this is to call or email with questions before you sign anything. Their responsiveness during the sales process usually reflects what you’ll experience once you become a client. If they’re hard to get in touch with now, they will likely be even more challenging to reach when you actually need help in the future.
Review Their Financial Stability Ratings
If your insurance provider goes bankrupt when you have an open claim, it could leave you completely exposed. Although this may seem far-fetched, err on the side of caution and check their A.M. Best rating, which measures their financial strength and ability to pay claims. Look for companies rated A- or higher.
The National Association of Insurance Commissioners (NAIC), meanwhile, provides complaint ratio information. This indicates how often policyholders file complaints against specific insurers. If a provider you’re considering has a high complaint ratio, proceed with caution.
Look for Providers Who Offer Risk Management Support
The best insurance companies won’t just sell you policies; they will help you prevent claims in the first place. Find out if they offer safety training for your staff. Can they review your store layout for potential hazards? Do they provide resources about how you can reduce pet-related incidents?
Some insurers perform regular risk assessments and offer recommendations for improving safety, while others might help you to develop emergency procedures. In addition to potentially reducing your premiums, these approaches can help you make your operations safer.
Examine Policy Exclusions Carefully
Every insurance policy has exclusions, and some may be more acceptable to you than others. Some policies exclude certain dog breeds, exotic animals, or specific types of services. Others might exclude claims related to employee injuries or damage that arises from specific causes.
Read the exclusions section of any proposed policy before you sign it, and ask questions about anything unclear.
Are You Ready to Protect Your Pet Store Business?
At John M. Glover Insurance Agency, we understand that pet stores must deal with particular challenges, and we don’t believe in selling cookie-cutter policies that leave dangerous gaps in your coverage. Contact us today to find out more about protecting your pet store.
