Pet Insurance: A Smart Addition to Your Employee Benefits Package

As HR professionals explore new ways to support and retain their workforce, benefits that reflect employees’ real lives are more important than ever. When organizations offer their people benefits that match their needs outside of work, they demonstrate genuine care for their well-being, fostering loyalty and creating a more engaged workforce.

One area gaining momentum is pet insurance, a voluntary benefit that’s both timely and impactful for today’s employee population.

According to Forbes Advisor, 66% of U.S. households, or 87 million homes, now own a pet. Supporting this, the American Veterinary Medical Association reports over 59 million households own dogs and 42 million own cats, with many owning both.

Together, these figures highlight a clear trend: for many employees, pets are truly a part of their family.

Rising Veterinary Costs and Insurance Demand

Keeping fur babies happy and healthy remains a top priority amongst pet owners. With the cost of veterinary care rising, even routine visits can place strain on household budgets, and unexpected emergencies can be financially overwhelming.
Offering pet insurance helps ease that burden, giving employees the ability to plan for the unexpected while feeling supported by their employer.

What Does Pet Insurance Cover?

While policy and coverage options can vary, most pet insurance policies cover a range of medical expenses including:

• Accidents and Illnesses (chronic or acute)
• Surgeries and diagnostic tests (X-rays, bloodwork, etc.)
• Prescription medications
• Preventative care (such as vaccines or flea and tick prevention)

Plans are typically reimbursement-based, allowing employees to choose their deductible, reimbursement rate, and coverage limit. While pre-existing conditions and elective procedures are generally excluded, the flexibility of plan customization makes this benefit highly accessible.

Adding Value to Your Total Rewards Strategy

Pet insurance isn’t just a nice-to-have benefit; It serves as a valuable way to strengthen your overall benefits package.

Offering this coverage can enhance your total rewards strategy in several ways:

• Heighten perceived value. Particularly among Millennial and Gen-Z employees.
• Reduced or no cost to employers. As pet insurance is typically offered as a voluntary benefit.
• Boost to employee satisfaction and retention. Demonstrating empathy and support for employee lifestyles.
• Recognition of employee roles outside of work. By easing financial stress during pet-related emergencies, employees can feel supported outside of their standard roles.

Implementing with Ease

Implementation of pet insurance benefits typically involves minimal administrative effort, as most plans are voluntary and managed directly by the provider. Many provider partners will:

• Coordinate with your HR team to ensure seamless integration with your existing benefits package.
• Provide clear employee communication materials so your workforce understands how the benefit works.
• Offer ongoing support and resources to help employees get the most from their coverage.

Promoting Pet Insurance Year-Round

October, recognized as National Pet month, is a perfect time to spotlight pet insurance. Providing reminders throughout the rest of the year can ensure employees see its value. Consider:

• Launching a “Pet Perks” campaign or photo contest
• Including pet insurance specific material in new hire orientation and benefits enrollment
• Promote sharing of personal experiences using the benefit throughout the year

These touchpoints help position pet insurance as form of financial preparation while also driving employee engagement and satisfaction.

A Small Benefit with a Big Impact

Pet insurance may seem like a niche offering that is easy to overlook, but to pet-owning employees, it sends a powerful message of care and consideration. It’s a benefit that is personal, practical, and impactful, helping to position your organization as one that values who your employees are outside of the workplace.

As part of a modern benefits strategy, pet insurance aligns with evolving employee expectations and gives your organization a competitive edge. Connect with your AssuredPartners advisor to learn more about pet insurance options and other voluntary benefits that can bring value to your organization.