Should You Offer Pet Insurance as an Employee Benefit?

Your employee benefits can make or break how well you attract and retain talent as a business. The benefits you offer show employees how serious you are about their well-being. That's why offering benefits like a flexible schedule and mental health insurance have become the norm.

Unfortunately, such benefits are now table stakes. If you're looking to stand out from the list of prospective employers that candidates are interested in, you need benefits that show your employees that you really care.

Why not consider offering them pet insurance as an employee benefit?

What Is Pet Insurance for Employees, and Should You Offer It?

Pet insurance protects your employees’ finances whenever their pets get sick. The insurance company will offer reimbursement if your employees need to pay for veterinary care in case of an accident or illness. 

The insurance will provide coverage for a certain percentage of the qualified expenses. For example, it will cover expenses like blood tests, prescriptions, and surgeries. It will also reimburse pet owners for routine teeth cleaning and vaccination procedures. However, all policies will have a limit to what they cover. 

For instance, most insurers don’t cover pre-existing conditions. These conditions could include any issue that the pet received medical care for within the past 12 months, including digestion problems, cancer, and hereditary issues.

Insurance makes employees' lives less stressful, meaning it’s an important benefit to offer.

How Popular Is Pet Insurance for Employees?

Two in every three U.S. households own a pet, and most people consider pets to be part of their family. They'll invest a lot into making their pet comfortable at home, including paying for quality health care. Unfortunately, pet care costs are rising each year, but pet insurance can help offset the financial burden, making it a popular benefit for employees.

For more context, the pet care industry’s revenue reached a record high of $109 billion in 2021, a $6 billion increase from 2020. These rising costs have led 47% of pet parents into some form of pet-related debt.

A majority of the costs come from veterinary care. For instance, dog owners spend an average of $1,480 per year on basic care and routine veterinary visits. Offering pet insurance as an employee benefit will give current and future employees some peace of mind and reduce their pet-care-related financial strain.

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How to Introduce Pet Insurance Through Work

The idea is to look for an insurance policy that will offer maximum value to your employees. They should feel at ease when their pets are covered by the insurance. When shopping for insurance benefits, ask yourself a few questions:

• Is the insurance company reputable? Does it have a good rating?
• Does the company offer a group-wide discount?
• Will the pet insurance work with all vets nationwide, or will it be limited to specific locations?
• Does the company have breed or age restrictions?
• Does the company offer competitive rates in comparison to other insurance carriers?

Most importantly, you should pick a pet insurance class that offers comprehensive coverage. There are three types of pet insurance that employers can offer:

• Accident-only plans: These policies cover only the costs of accidents. While they are the cheapest option, they neglect long-term illness protection and wellness programs.
• Accident and illness plans: In addition to covering accidents, these policies cover conditions like cancer, infections, injuries, and other non-genetic illnesses. 
• Wellness plans: These plans include coverage for preventive care at an additional cost. They cover veterinary care, exams, and even tests. The goal is to improve the pet’s long-term well-being. 

How Pet Insurance Employee Benefits Will Help You Hire Better

Considering that there has been an increase in pet adoptions since the COVID-19 pandemic began, pet insurance is a value-oriented employee benefit, alleviating the rising costs of pet ownership.

Pet insurance is also in tune with the remote work culture. If your business is leaning heavily on remote work, you know that employees spend a lot of time with their pets at home. Pet insurance ensures that they keep their “four-legged coworkers” feeling healthy. Besides, perks like free office snacks might be invalid in a remote work setup. 

Pet insurance also helps protect employees’ own mental health. For some employees, their pets act as emotional support animals. They help them conquer their anxiety and keep them entertained throughout the day. Offering pet insurance shows such employees that you see how much they value their pets and are willing to invest in their mental well-being.

When all other factors are equal, most employees who are “pawrents” will choose a company that offers pet insurance over one that doesn't.

For more tips on improving your employer brand, head to our Employer Resource Center.