What Types of Insurance Does a Pet Grooming Business Need?

Pet grooming styles vary from breed to breed, requiring patience and a good understanding of animals. The best groomers are skilled in the art of cleaning, trimming, and styling household furry friends. As pet grooming businesses help pet owners care for animals, they need good insurance coverage to protect them from liabilities and losses caused by accidents.

Related: Guide to starting a pet grooming business

What Are Some Risks for a Pet Grooming Business?

Some of the risks for a pet grooming business include incidents such as 

• Pet injuries
• Employee injuries
• Loss or theft of pets
• On-site customer injuries
• Car accidents

Pet Injuries

Pet injuries may arise from improper or unsafe grooming practices. Failing to groom the pet correctly can lead to injuries and unexpected outcomes. For example, some dog breeds can develop skin rashes and inflammation from overheated clippers or hair that’s been trimmed too short. As a result, customers may sue the business for veterinary bills and pain and suffering from accidents resulting in a loss of the pet.

Improper use of grooming equipment is a common source of injury concerns. For instance, the equipment can cause injuries such as 

• Cuts, nicks, and abrasions from clippers and scissors
• Nail bleeds or infections if nails are cut too short
• Burn injuries from overheating equipment (i.e., clippers and hair dryers)

Further, grooming businesses that offer specialty hair services, such as hair dying and coloring, have a risk of chemical exposure that may cause illness or irritation to the skin, eyes, and respiratory system. Other products such as shampoos and insecticides for fleas are other chemical hazards that may trigger allergic reactions, irritations, and illness.

Inexperienced or untrained groomers are a risk for pet grooming businesses because they may be more likely to make mistakes. In addition, a groomer needs well-rounded knowledge of different breeds to know how to care for differing coat textures and which animals are prone to burns and skin irritations.

Employee Injuries

Employees performing the grooming services experience the greatest amount of risk. Injuries from animal bites, scratches, and attacks are the primary concern for employee safety. Depending on the animal’s size, wounds range from minor discomfort to severe injuries that require medical attention. Cuts, punctures, and lacerations are also possible from the groomers’ tools and equipment, such as scissors, clippers, and shears.

Groomers may also experience muscle strains and back injuries from lifting and maneuvering animals from kennels, bathing stations, and work tables. Slips and falls are also a hazard as grooming areas are prone to wet and slippery floors. 

Other employee hazards include

• Hearing injuries from excessive noise
• Dehydration from hot workspaces
• Illness or irritation from exposure to chemicals (i.e., soaps, dyes, and cleaning products)
• Exposure to illnesses and diseases passed on by animals (i.e., fleas and rabies)

Loss or Theft of Pets

Many groomers will have the pet remain in their care for the duration of the grooming service. This means the business is liable for any losses of the pets while in their care. For example, losses can occur due to escape, theft, or fatal injury from on-site hazards like fires or earthquakes.

Although most of the grooming services are likely performed indoors, there may be scenarios where the groomers take the animals outside. For example, some groomers may have multiple animals on-site for several hours, so it is likely that an employee will take animals outside on a leash for bathroom and exercise breaks. The risk of escape increases outdoors and can occur because of faulty leashes or broken fences. 

On-Site Customer Injuries

Customers have several injury risks in the pet grooming business. For example, one of the main concerns will be injuries that result from slips, trips, or falls. Slip and fall injuries can happen on wet, soapy flooring, cluttered walkways, or being knocked over by another animal. 

Another main concern is customer injuries from bites, scratches, or attacks from other animals. These accidents may occur in reception areas, waiting rooms, or outside (such as in dedicated animal potty areas).

Waiting rooms also hold several hazards for customers. For example, broken or ill-maintained furniture can lead to injuries, such as cuts, falls, and sprains. Inventory and shelving may also cause injury if they fall or topple over. 

Car Accidents

Although many pet groomers provide on-site services, some pet grooming businesses are mobile and complete their services at a customer’s location. As a result, these mobile businesses will be on the road frequently and risk car accidents. 

Car accidents result in liabilities, damage to company vehicles, and a potential loss of income. Some of the more common reasons that car accidents occur include

• Driving in unfamiliar locations
• Driver fatigue
• Distracted driving
• Pressure to meet timelines
• Traffic
• Inclement weather
• Low visibility
• Shifting items inside the vehicle

What Types of Insurance Policies Should a Pet Grooming Business Consider?

A pet grooming business has several risks that can threaten its financial well-being. However, there are many insurance policies to cover the risks. Some of the key pet grooming insurance policies that new pet groomers should consider include the following:

• Professional liability animal bailee insurance
• Workers’ compensation insurance
• Inland marine insurance
• General liability insurance
• Commercial automobile insurance

Professional Liability Animal Bailee Insurance

Professional liability animal bailee coverage insures the pet grooming business for claims resulting from errors or negligence in providing a professional service—in this case, safe and effective pet grooming. When the business fails to deliver safe grooming and injures a customer’s pet during the service, the customer may sue the business for veterinary bills and pain and suffering.

Fortunately, a pet grooming business can protect themselves from this risk with professional liability insurance, which covers

• Errors
• Omissions
• Failing to complete a promised service
• Negligence

The professional liability policy covers the liability costs, such as veterinary bills, legal defense costs, and awarded settlements. 

Workers’ Compensation Insurance

A workers’ compensation insurance policy covers employee injury claims. Following an incident, an employee or independent contractor may have extensive medical bills and a loss of income, putting them in a financial bind. However, a workers’ compensation insurance policy is designed to help employees navigate their recovery with financial assistance by covering some of their costs. 

Some of the primary coverages on a workers’ compensation insurance policy include

• Medical expenses—i.e., emergency room visits and doctor bills
• Lost income—reimbursement for some of the income lost during recovery
• Ongoing rehabilitation care—such as physical therapy or chiropractic care
• Disability income—provides medical care and income replacement for injuries that result in a disability
• Funeral expenses—assists the friends or family of a deceased employee

Inland Marine Insurance

An inland marine insurance policy covers the customers’ pets while they are in the care of the dog groomers with coverage called a live animal floater. This type of coverage insures the animals for specifically named perils that lead to a loss of an animal. For example, live animal floaters generally cover escape, theft, and fire.

The types of perils included in the live animal floater policy may vary from one company to another, so it is important to read the policy and ensure that your business risks are adequately covered.

General Liability Insurance

General liability coverage protects business owners against bodily injury and property damage liability claims that occur on-site or due to the actions of the business. For example, a general liability policy covers a customer who slips on a wet floor and is injured in the waiting room. The business may be liable for the injury because the incident happened on business property, and the business failed to maintain the floor. 

Therefore, the business needs coverage to protect themselves from expensive claim costs, and a general liability policy covers many claims expenses, including

• Medical bills
• Property damage repairs
• Legal fees
• Settlement

Typically, a general liability policy and a professional liability policy are covered by the same insurance company or at least for the same coverage limits as there may be overlapping risks. Using the same company or coverage limits helps ensure that the insurance company covers the claims on time.

Commercial Auto Insurance

A commercial automobile insurance policy offers two key coverages for a pet grooming business: liability coverage and physical damage coverage. In addition, auto insurance policies will also cover medical payments and uninsured motorist coverage. 

Liability insurance protects the business from at-fault car accidents that result in costly bodily injury and property damage claims. Liability insurance pays for the third party’s medical bills and property damage repairs.

Physical damage insurance covers company-owned vehicles with collision coverage and comprehensive coverage. Collision coverage offers financial assistance for damage caused by collisions, whereas comprehensive coverage insures vehicles for non-collision-related perils. Some examples of covered hazards in comprehensive coverage include

• Fire
• Vandalism and theft
• Falling objects
• Wind and hail
• Glass breakage

Medical payments cover the medical bills for the injured driver of a company vehicle and its passengers, regardless of fault.

Uninsured motorist coverage offers bodily injury coverage for the business when a driver without insurance causes an accident or for a hit-and-run accident.