Nearly 70% of U.S. households own a pet, and 30% of employees say offering pet insurance would make them consider staying at a company or inspire them to switch to one that does. If you’re a broker looking to add to your portfolio of employee benefits, pet insurance could be the answer. Let’s explore the pet insurance industry in more detail and consider the advantages your small- and medium-sized business (SMB) clients could experience by offering this coverage to their employees.
How does pet insurance work?
Pet insurance policies cover a range of services, depending on the plan. Most comprehensive policies cover wellness exams, shots, chronic conditions, and acute injuries and illnesses. However, expensive veterinary bills can still occur for severe medical problems. To address such situations, policies also exist that cover accidents, severe illness, hereditary conditions, and basic care like flea prevention. The North American Pet Health Insurance Association estimates that 5.36 million American pets are insured, with the total amount of premiums surpassing $3 billion. Common pet insurance claims for dogs and cats include skin issues, urinary tract infections, gastrointestinal issues, ear infections, and upper respiratory infections.
The need for—and rise of—employer-sponsored pet insurance
While 66% of U.S. families own a pet, only approximately 4% of dogs and 1% of cats are insured. It’s estimated that every six seconds, a pet owner receives a bill of $1,000 or more. The annual cost for pet care is almost $1,400 for a dog and over $1,100 for a cat. Employers have noticed the financial strain that furry family members can cause. The Society for Human Resource Management (SHRM) reports that pet insurance as an employee benefit is rising in popularity, with 19% of organizations now offering coverage.
3 benefits of pet insurance for employers
Pet insurance not only focuses on keeping our four-legged friends healthy and their parents’ bills low but also benefits the employers that offer it. Here’s how:
1. Improve talent acquisition and retention
Pet insurance can provide the appeal employers need to win over job candidates and retain their current workforce. Almost three-quarters of workers report that they become happier at their jobs when they receive more benefits. Further, 30% of employees said having pet insurance benefits would convince them to stay with their current organization or leave for an employer that does offer them. Employers can go beyond insurance and offer options like paid time off to care for a pet, a pet-friendly office environment, and even “paw-ternity” leave after adopting a new four-legged friend.
2. De-stress employees
Pets can help alleviate burnout among desk-based staff, which has been at an all-time high since spring 2021, with 42% of employees reporting being burned out. The Centers for Disease Control and Prevention (CDC) states that pets encourage people to exercise, go outside, and socialize. Pet ownership is also linked to decreased blood pressure, cholesterol, and triglyceride levels and can help people manage depression and anxiety. Pet insurance can further ease people’s minds, allowing employees to focus and relax at work knowing they have an insurance policy in place to provide their pets with affordable, high-quality care when needed.
3. Strengthen company culture
Pet insurance allows small businesses to offer a benefit that aligns with their corporate values and can boost company culture. By providing access to affordable pet care, employers show their workforce that they care about their entire family, their lives, and their wallets. Businesses can also extend their pet-friendly stance by establishing pet owner clubs, hosting pet-friendly company events, providing pet-related corporate swag, or supporting local animal rescue organizations through donations and matching employee donations.
Help make a “pawsitive” change
More and more workers are looking to access pet insurance through their employers, and brokers can help. By partnering with a professional employer organization (PEO) like ExtensisHR, brokers can offer their clients access to affordable, top-rated pet insurance plans, as well as other free and low-cost benefits like telemedicine and employee assistance programs (EAPs). ExtensisHR’s employee benefits experts provide comprehensive planning, administration, and management services, and their customer support team offers a human response in mere seconds. Ready to help your clients put their best paws forward and get their employees’ tails wagging? Contact ExtensisHR to discover how you can add pet insurance to your toolkit.
FAQs
Q: What does pet insurance cover?
A: Pet insurance policies cover a range of services, including wellness exams, shots, chronic conditions, acute injuries and illnesses, accidents, severe illness, hereditary conditions, and basic care like flea prevention.
Q: Why should employers offer pet insurance?
A: Offering pet insurance can improve talent acquisition and retention, de-stress employees, and strengthen company culture. It provides an appealing benefit for job candidates, boosts employee happiness and loyalty, improves mental and physical health, and aligns with corporate values.
Q: How can brokers help clients offer pet insurance?
A: Brokers can partner with professional employer organizations (PEOs) like ExtensisHR to offer clients access to affordable pet insurance plans and other benefits. ExtensisHR provides comprehensive planning, administration, and management services, along with quick and responsive customer support.
Conclusion
Pet insurance is a valuable benefit that can improve employee satisfaction, attract and retain top talent, and foster a positive company culture. By understanding the advantages of pet insurance for employers and partnering with the right organizations, brokers can help their clients offer employer-sponsored pet insurance and enhance their overall employee benefits package.
