Insurance is a must for any business—and not all policies are the same. Insurance companies have standard business policies, but typically, industry specialists know the coverage that need to be included in your specific protection package. Insurance policies and what they cover in the areas of pets, people and property, can be confusing.
Must-Have Insurance for Your Business
1. Business Liability for Your Grooming/Mobile/Kennel/Day Care Operations including Product Liability:
Business Liability protects your business against claims for injuries to your customers and the general public. The exposures for your business would typically include accidents at your premises, such as slips and falls, a dog biting a customer, etc. Your Product Liability would include someone being harmed or injured because a product that you sold to them was faulty or malfunctions.
2. Customers Pets and Professional Liability:
Nearly all insurance policies exclude any coverage for customers' pets. We have seen a couple of insurance companies that may extend coverage for customers pets, but it is very limited. By very limited, I mean they may only insure them against fire, lightning, windstorm, hail, and vandalism.
The coverage you need to have on your policy are Customers Pet Coverage that is not limited, as I mentioned above. This coverage would include loss or injury to a pet if there is death, destruction, theft, escape or even if the customer’s pet is in a fight with another customer’s pet. It is very important to verify with your insurance agent exactly how your policy extends to your customer’s pets and that your coverage is not limited.
You also need Professional Liability. This would protect you in the event of a lawsuit that could arise from the performance of your professional duties as a kennel operator or groomer. This will also include payment of veterinary bills in the event of an injury to a customer’s pet while it is in your care, custody, and control.
3. Property, Loss of Income, Money, Sign's and Other Miscellaneous Coverage.
If you own the building that you are operating from, you will obviously need to insure it, as well as, the Business Contents with which you operate the business. When insuring your building and contents, you need to be certain you have Replacement Cost included for both. By including this, you will avoid the insurance company depreciating your building and/or contents in the event of a loss.
Loss of Income if your property is damaged or destroyed is also very important. This will typically pay for your lost income until your property is repaired or replaced. You should be looking for coverage that is not limited but rather one that pays actual loss sustained for a certain time period. (Do not confuse this with loss of income or disability coverage if you are injured or disabled. You can only collect in this case if you have a disability policy or worker's compensation coverage.)
Money, glass, sign and sewer/sump back-up coverage are also some of the items you may need to have within your policy. Keep in mind that sewer/sump back-up coverage is not flood coverage. Flood coverage is a separate coverage and is available, if needed.
4. Workers Compensation:
Workers Compensation, a.k.a. Workman’s Comp, is a benefit system designed to help workers who have become injured or sick due to their work conditions or their work environment. Fundamentally, the system works like this: When a worker becomes injured, rather than sue their employer, they can file a claim for compensation. Workers compensation is a no-fault system that allows employees with work-related injuries or illness’ the ability to receive certain benefits (which normally includes medical care, payment of a certain percentage of a worker's wages, and, in many cases, the continuation of certain benefits) while not suing their employer. (In some instances, an employer can still be sued, though this generally involves extreme negligence on the employer’s part.)
If you formed a corporation, owners would typically be eligible to be included in the policy. In most states, sole proprietorships or individual owners may be able to include themselves in the policy.
One of the biggest concerns for employers is whether or not an independent contractor needs to be covered by workers compensation. The answer is … it depends. Independent contractors are not eligible for workers compensation; however, some employers will classify a worker as an independent contractor, when, in fact, the worker in question more readily fits the definition of a basic employee. If a worker is designated as an independent contractor but is substantially “controlled” in the conduct of work duties, then the worker is typically considered an employee. In other words, if the individual is largely dependent on the employer in order for work duties to be accomplished, the individual is probably an employee—even if on paper they are designated as an independent contractor. Employees, of course, may file for workers compensation.
5.Mobile Grooming Van or Trailer:
We have talked to many mobile groomers that are insuring their vans or trailers under their Personal Auto Policy and some under a normal Business Auto Policy.
Insuring your grooming van or trailer under a Personal Auto Policy is taking a major risk. Most, if not all, personal auto policies will exclude business use for your van and trailer. Because of this exclusion, an insurance company has the ability to deny any claims that you may have; such as fire, theft, collision or even liability. It is important to insure your commercial grooming van or trailer under a Commercial Auto Policy since you are operating a business.
The standard Business Auto Policy can include liability, uninsured/underinsured motorists, medical payments, comprehensive, and collision coverage. The Business Auto Policy will not typically include coverage for the conversion value of your van or trailer, and these values and customization should be identified on your policy. If the value is not identified on your policy, you will most likely not have coverage for your conversion and could only be paid for the cab and chassis.
Special endorsements, not usually typical to standard insurers, can be added to the Commercial Auto Policy to include the customization of your van or trailer.
Loss of Income for Your Mobile Grooming Van:
In addition to including the customization coverage, your policy should include coverage for your loss of income if your van or trailer are damaged or destroyed. Obviously it would be difficult to rent a mobile grooming van while your van is being repaired. Therefore, the loss of income coverage would subsidize your income until your van is repaired.
Don’t confuse loss of income for your property coverage with the loss of income for your vehicle. We talk to many mobile groomers that think they have the loss of income coverage for their vehicle and ultimately realize that it is on for their property.
In addition to the enhanced auto coverage, it’s important that you make sure your business package includes the available coverage for customers' pets, contents loose in the van, general liability, and professional liability.
In closing, similar businesses can have different insurance needs .It is recommended that you review your proposed or current coverage and exposures with a licensed insurance agent. Don’t be shy when speaking with this insurance agent. You need to ask specific questions about the coverage being proposed to you. It is not rude or out of line to ask the agent to follow up with the answers to your questions in writing, either.
To recieve your customized coverage proposal,call and speak to one of our 5 Pet Industry Specialists at:
1-877-PET-GROOMER (738-4766)
or
complete an online application at:
www.governorins.com
