Insurance Cost for a Pet Boarding Business: What Affects Your Premium?
- Feb 11
- 2 min read
Understanding the insurance cost for a pet boarding business is essential for kennel owners who want protection without overspending. Whether you operate a small dog boarding facility or a large pet care center, knowing what affects premiums helps you budget wisely.
Here’s a detailed guide on factors that influence dog kennel insurance costs and typical price ranges.
1. Type of Services You Offer
The type of services you provide directly impacts your premium. Basic overnight boarding has lower risk than facilities that offer:
Dog daycare
Grooming services
Obedience training
Pet transportation
For instance, grooming introduces professional liability risks, while pet transport may require commercial auto coverage. Insurance providers factor these into your pet boarding business insurance cost.
2. Number of Animals and Employees
Premiums increase with the number of pets and employees. More animals mean higher liability exposure, and employee presence requires workers’ compensation, which adds to the total cost. Most kennel owners can expect:
Workers’ Compensation: $0.75–$2.50 per $100 of payroll
3. Facility Size and Property Value
Commercial property insurance depends on:
Building size and replacement cost
Kennel equipment value
Location and local hazards (floods, storms)
Typical costs:
Commercial Property Insurance: $500–$3,000+ per year
Facilities in high-risk areas pay more, according to the Insurance Information Institute.
4. Coverage Limits and Deductibles
Higher limits increase premiums, while higher deductibles reduce them. Key coverages affecting cost include:
General Liability Insurance: $300–$1,000/year for $1M/$2M limits
Animal Bailee Insurance: $250–$1,000/year
Professional Liability (for grooming/training): $300–$800/year
Overall, most small to mid-sized kennels spend $800–$3,500 annually, while larger facilities may pay $5,000+.
5. Claims History and Risk Management
A clean claims history can lower premiums. Implementing safety measures like secure fencing, staff training, and client waivers demonstrates responsibility and reduces perceived risk.
Get the Right Coverage at the Right Price
Every kennel is unique. The best way to determine your premium is to request a customized quote from an agency experienced in pet care coverage.
At Wexford Insurance, we help kennel owners secure comprehensive, affordable pet boarding business insurance tailored to their services, facility size, and risk profile.
👉 Request a free pet boarding insurance quote from Wexford Insurance today.
