Common Insurance Terms for Dog Walking and Pet Sitting Businesses

It’s tempting to opt for the cheapest insurance quote, especially when you first start up your business, and then hope you’re covered for every eventuality. (If you’re wondering if you need insurance at all, check out our previous article on the subject here; do I really need insurance?)

Taking some time to understand some of the key insurance terms can help you make a better informed decision regarding the policy and choose the level of coverage that is suitable for your business.

We look at some of the more common terms, what they mean and add some examples to help with understanding how these terms might affect you, the dogs in your care, and your business.

Public Liability Insurance

Public liability insurance is a type of insurance coverage that protects a business from financial losses if they are found responsible for injury to a third party or damage to their property. This is particularly important for businesses that interact with the public or have a physical presence, as accidents can happen even with the best safety measures in place.

Non-negligent insurance cover

Non-negligent insurance cover, also known as “no-fault” insurance cover, refers to an insurance policy that provides coverage regardless of whether or not the policyholder was at fault for the accident or loss.

This means that the insurance company will pay out in the event of a claim, regardless of whether the policyholder was found to be responsible for the loss.

Non-negligent insurance cover is typically used for types of insurance that cover accidental losses, such as personal injury insurance or pet insurance. In comparison, traditional liability insurance only provides coverage if the policyholder is found to be responsible for the loss.

Example

An example of a dog walking situation where non-negligent insurance cover might be claimed for could be if a dog walker is out on a walk with a client’s dog and the dog is injured in an unexpected accident, such as being hit by a car.

In this scenario, the dog walker would not necessarily be found to be at fault for the accident, but the owner of the dog would still incur veterinary expenses as a result.

With non-negligent insurance cover, the policyholder (the dog walker in this case) would be able to make a claim on their insurance policy to receive compensation for the veterinary expenses, regardless of whether they were found to be responsible for the accident or not.

This type of insurance coverage can provide peace of mind for pet-based businesses, as it helps to protect against unexpected expenses resulting from accidents or injuries.

Premium

A premium is the amount of money that a policyholder must pay to the insurance company in exchange for coverage. This amount is typically paid on a monthly or yearly basis and is calculated based on factors such as the type of business, the level of coverage, and the level of risk involved.

Deductible/Excess

A deductible is the amount of money that a policyholder must pay out of pocket before their insurance coverage kicks in. This amount is determined by the policyholder at the time of taking out insurance and is subtracted from any payouts made by the insurance company in the event of a claim.

Limit of Liability

The limit of liability is the maximum amount of money that an insurance company will pay out in the event of a claim. This amount is set at the time of taking out insurance and is based on the level of coverage chosen by the policyholder.

Example

An example of a dog walking situation where the limit of liability might be applied is if a dog walker is out on a walk with a client’s dog and the dog bites a passerby.

In this scenario, the passerby might choose to take legal action against the dog walker and claim compensation for any medical expenses or other losses they incurred as a result of the bite.

If the dog walker has public liability insurance with a limit of liability of £1 million, this means that the insurance company will pay out up to £1 million in the event of a claim.

If the claimant’s expenses exceed the limit of liability, the dog walker will be responsible for paying the remaining amount. It is important to note that the limit of liability is the maximum amount that an insurance policy will pay out in the event of a claim, and it is up to the policyholder to ensure that the limit of liability is adequate for their needs.

Exclusions

Exclusions are events or circumstances that are specifically not covered by an insurance policy.

For example, if a dog walking business only provides coverage for injuries to third parties, damage to their property would not be covered. It is important to carefully read and understand the exclusions listed in an insurance policy to ensure that all necessary coverage is in place.

Example

In the context of public liability insurance for a dog walking business, common exclusions might include:

• Dog bites: If a dog under the care of the dog walker bites someone, this may not be covered under the policy, as dog bites are often considered a foreseeable risk associated with working with dogs.
• Criminal acts: If the dog walker is accused of a criminal act while working with a client’s dog, such as theft or intentional harm, this may not be covered by the insurance policy.
• Pre-existing conditions: If a dog has a pre-existing condition, such as a chronic illness or injury, and this is exacerbated while in the care of the dog walker, the expenses associated with treating the condition may not be covered.
• Illegal activities: If the dog walker is involved in any illegal activities while working, such as dog fighting, this may not be covered by the insurance policy.

It is important to carefully review the policy wording and understand any exclusions that apply to the policy, in order to ensure that the coverage provided is adequate for the needs of the dog walking business.

In some cases, it may be possible to purchase additional coverage or add endorsements to the policy to address specific exclusions or risks.

Claims

A claim is a request made by a policyholder to the insurance company for compensation in the event of a covered loss. The process of making a claim typically involves the policyholder providing documentation and evidence of the loss, and the insurance company assessing the validity of the claim and determining the amount of any payout.

Example:

A dog walking business takes out public liability insurance with a limit of liability of £1 million. During a walk, one of the dogs damages a customer’s car. The dog walking business makes a claim on their insurance and the insurance company finds that they are liable for the damage.

The cost of repairing the car is £800. The deductible/excess on the policy is £500, so the policyholder pays the first £500 of the repair cost and the insurance company pays the remaining £300.

Indemnity

Indemnity refers to the protection provided by an insurance policy. It means that the insurance company will compensate the policyholder for any covered losses, up to the limit of liability, in the event of a claim. This helps to mitigate the financial impact of an accident or loss on the business.

Risk Assessment

Risk assessment is the process of evaluating the potential risks and threats facing a business. This includes identifying the likelihood of different types of accidents or losses, and determining the potential financial impact if they were to occur.

A risk assessment is an important part of determining the level of coverage that a business needs in order to be fully protected.

Policy Wording

The policy wording is the document that outlines the details of an insurance policy, including the type of coverage provided, the limit of liability, the exclusions, and any conditions or restrictions that apply. It is important to carefully read and understand the policy wording in order to fully understand the coverage provided by an insurance policy.

Renewal

Renewal refers to the process of continuing an insurance policy beyond its initial term. This typically involves the policyholder paying the premium for an additional term, and the insurance company agrees to provide ongoing coverage.

Well done for making it to the end of this article! Having a comprehensive understanding of these common insurance terms is essential for pet-based businesses, such as dog walking and pet sitting, to ensure that they have adequate coverage in place.

Don’t forget to check your policy wording to know for certain how many dogs you can walk at once.

By considering factors such as the premium, limit of liability, and exclusions, and regularly reviewing and updating coverage as needed, your business can be confident that it’s protected against the unexpected.