Over 86 million U.S. households now include a pet, and for many employees, these animals are beloved family members. When pets get sick or injured, the emotional toll can be just as heavy as the financial one.  

In response, many employers have taken steps to alleviate the burden of pet care costs by offering pet insurance and wellness plans in employee benefits packages.

However, as demand for this unique benefit grows, so does the complexity. New state-level regulations based on the National Association of Insurance Commissioners (NAIC) Pet Insurance Model Act have changed how pet insurance is governed. These changes are designed to protect consumers, with clearer guidance and less confusion about coverage. Staying ahead of these shifts is essential for companies committed to offering benefits that employees can rely on when they need them most. 

What’s Changing in Pet Insurance 

As we explain in this article, there are no federal laws directly governing pet insurance, which is treated as property and casualty insurance. It’s primarily up to individual states to regulate how pet insurance is marketed and sold.  

However, the NAIC’s Model Act offers a regulatory framework for states to reference when creating pet insurance standards. Increasingly, states are introducing legislation that aligns with the Model Act to enhance consumer protection and transparency in pet insurance policies. California, Pennsylvania, Ohio, Florida, and Louisiana are among the first states to adopt such legislation, with more expected to follow in 2026. 

Here’s what the Model Act requires: 

• Clear definitions and disclosures: Terms like “pre-existing condition,” “chronic condition,” or “waiting period” must be explained clearly, so there’s no fine-print confusion. 
• Transparency about what is and isn’t covered: Insurers must state upfront what is excluded, whether coverage can be reduced over time, and how renewals work. 
• Separation between insurance and wellness: Routine care and wellness benefits (like vaccines and checkups) must be marketed separately from accident and illness insurance products. 
• Proper licensing and training: Before selling, soliciting, or negotiating a pet insurance product, providers must obtain proper licensing and training. Training topics include pre-existing conditions, waiting periods, the differences between pet insurance and non-insurance wellness programs, and other relevant subjects. 

This push for clarity is welcome news for pet parents. However, employers must be aware of the nuances to avoid legal missteps when offering pet benefits to employees.   

Where Pet Insurance Laws Are Taking Effect 

A few years ago, only a few states had implemented pet insurance laws, but the regulatory environment is shifting rapidly. As of late 2025, 14 states have adopted NAIC-inspired rules to treat pet insurance as a unique product with specific terms and protections.  

Understanding your state’s pet insurance regulations is crucial if you wish to offer pet insurance as a voluntary benefit. Here’s a quick overview of the current status of pet insurance legislation in five key states. 

• California: In 2024, the Golden State expanded its original 2014 law with the CA Model Act, which mirrors Model Act guidance. 
• Florida: In the Sunshine State, lawmakers have passed HB 655, which takes effect on January 1, 2026. It requires pet insurers to provide clearer disclosures around how claims are paid, waiting periods, deductibles, exclusions, and any required medical exams. 
• Louisiana: In 2023, the state adopted the NAIC model, with new legislation taking effect in 2024. The law amends the state’s crop and livestock insurance regulations. 
• Ohio: The state adopted Model Act-style legislation in 2024. 
• Pennsylvania: In 2024, the state implemented pet insurance legislation based on the NAIC model. 

The momentum behind regulation isn’t slowing down, either. More states, including New Jersey and Rhode Island, are following suit to adopt pet insurance legislation. Going forward, expect to see additional states adopting NAIC-style legislation, as the pressure to offer protection and support for pet parents continues to mount. 

How Employers Should Handle Changing Laws 

With evolving legislation at the state level, staying informed and proactive is the best way for employers to remain compliant. Follow the suggestions below to make sure you’re offering well-rounded workplace benefits without running afoul of state laws. 

Prioritize Clarity 

The new laws push for transparency, and that’s a good thing. However, employers should take matters a step further. Ensure that vendors and benefit platforms present pet insurance and wellness plans in clear, concise language and that employees receive support in finding the right fit.  

Be Vigilant Across State Lines 

If your workforce spans multiple regulatory environments, a “copy-paste” pet benefit approach won’t do. Partner with carriers and administrators who understand the compliance landscape and can offer state-appropriate options. A good broker can help map your workforce by location and identify where you may need to make tweaks, from plan summaries to platform disclosures. 

Treat Wellness Plans Differently 

Wellness and discount plans are not the same as pet insurance. A wellness plan that appears to be insurance but doesn’t function like it can mislead employees. When offering pet wellness benefits, present them as distinct from pet insurance. Side-by-side comparisons, like Pet Benefits Solutions’ comparison table, can be a helpful resource for employees seeking to understand coverage details.  

Supporting People and Their Pets 

Offering pet insurance and pet wellness benefits is a wonderful way to support employees’ real lives, outside office walls and Zoom calls. With demand for voluntary benefits increasing, including pet insurance, now is the perfect time to consider ways to provide holistic support. Pet insurance brings peace of mind, helping employees feel confident they can handle unexpected vet expenses and prioritize their pets’ well-being. 

As the only voluntary benefits provider specializing in both pet insurance and alternatives, Pet Benefit Solutions makes it easy to offer meaningful benefits while remaining compliant. We stay ahead of changing laws and state-level guidance, so you can focus on offering the best workplace benefits for your team.  

To explore our pet benefit options, reach out to request a proposal today.