Skip to content
Understanding Pet Insurance - VSMG

Benefits of Offering Your Employees Pet Insurance

Not only has pet ownership in the U.S. seen an increase, but also the costs of owning a pet have been on the rise along with everything else. According to recent statistics, about 67% of households in the U.S. own a pet. This means more people are spending more on veterinarian bills and medications. Pet insurance is one way to help owners make sure their furry best friend is well taken care of without them having to worry about a budget-breaking expense. With nearly two-thirds of the workforce owning a pet, perhaps it’s time to consider including pet insurance in your employee benefits program.

Offering pet insurance as part of your employee benefits program isn’t just a perk—it’s a strategic move that can boost employee morale, well-being, and financial security. VSMG is here to help you understand what pet insurance is and how you can incorporate pet insurance into your benefits plan.

What is Pet Insurance?


It’s surprisingly similar to our own health insurance. It helps cover expenses related to accidental injury, illness, and wellness. Pricing for most plans varies based on type, age, breed, and zip code as well as annual coverage limit, deductible, and reimbursement percentage.

Here are a few types:

  1. Accident Coverage: Covers unexpected injuries.
  2. Accident and Illness Coverage: Covers unexpected injuries, diseases, and health conditions.
  3. Wellness Coverage: Cover preventive care like vaccinations and check-ups.
  4. Veterinarian Coverage: Offers a network of veterinarians with discounts of up to 30%

Coverage Details

What’s usually covered:

  • Accidents and injuries
  • Surgeries
  • Illnesses
  • Diagnostic exams
  • Prescription medications
  • Preventive care
  • Dental care
  • Vaccines

What’s not usually covered:

  • Boarding
  • Grooming
  • Cosmetic procedures
  • Pre-existing conditions
  • Breeding or pregnancy
  • Training

Benefits of Offering Pet Insurance to Your Employees


Employee Attraction and Retention

Pet insurance is a unique, attractive perk for job-seekers, especially young job seekers. Low unemployment, a competitive job market, and rising costs associated with owning a pet can make pet insurance a great differentiator when recruiting and retaining high-quality employees.

This is not just for big tech companies either. It’s readily available for any size organization to add as a valuable and voluntary (employee-paid) benefit that can aid in differentiating your organization from others. Moreover, pet insurance is usually a portable benefit – meaning your employees can take it with them wherever they go in life.

Employee Well-being

When employees know their fur babies are protected physically and financially in the case of an unexpected injury or illness, stress levels go down. This peace of mind allows employees the ability to focus better on their work without worrying about potential sky-high vet bills. When employees feel more supported and valued, they collectively promote a more positive and productive workplace.

Financial Security for Employees

According to the American Society for the Prevention of Cruelty to Animals, the average annual cost of owning a dog is about $1,400, and cat ownership costs about  $1,150. Nothing is worse than an unexpected illness or injury affecting your beloved pet. According to PetFIrst Pet Insurance, one in three pets need emergency veterinary treatment every year and a pet receives emergency care every 2.5 seconds in the U.S. 

Emergency vet care is expensive and can often create very trying financial situations for pet parents. Insurance can help cover portions of these expenses so employees don’t have to dip into savings or incur debt. This makes pet insurance valuable to pet owners who don’t have the financial resources to handle an unexpected illness or accident.

Steps to Introduce Pet Insurance


Thinking about adding pet insurance to your benefits package? Here are the simple steps that can help you to make the right decision for your company:

  • Gauge Interest: Conduct surveys to understand employee interest. 
  • Compare Providers: Select a few providers and compare and contrast their offerings in terms of affordability, suitability, and ease of enrollment.
  • Select a Provider: Choose a provider that offers comprehensive and customizable plans.
  • Onboard: Add pet insurance to the benefits guide, enrollment, and payroll systems. 
  • Launch: Introduce this new benefit during your next Open Enrollment to allow for maximum employee attention and participation.

Cost Considerations

Typically, the expense associated with pet insurance is minimal but can run high depending on the plan and the pet that’s being covered. Health insurance for pets is usually priced based on the zip code, breed, and age of the pet, while discount plans are priced per pet. That said, it’s always good to do your homework to find the right plan for your employees to make the benefit not just attractive, but also affordable and sustainable.

VSMG’s Role


Pet insurance is more than just a trend. It is a valuable and smart addition to any employee benefits package. Pet insurance enhances employee satisfaction, retention, well-being, and financial security. It’s a strategic benefit that speaks to many employees in the U.S. At VSMG we offer expert advice to help public entities evaluate and implement pet insurance effectively. Reach out to us today for more information.

Back To Top