For many people, pet insurance is necessary to help cover the rising cost of pet care. It provides pet owners with financial peace of mind while ensuring they can provide the best care for their furry – and not so furry – family members.

But pet insurance is not just an investment that pet owners need to make; it extends to their employers as well. Once considered a nice-to-have perk, pet insurance is now an expected part of a competitive total rewards package.

The Demand for Pet Insurance in the U.S.

Data shared by the National Pet Owners Survey found that 71% of U.S. households, or about 94 million families, had at least one pet in 2024. In contrast, just 56% of homes had pets in 1988.

Having a pet means planning for that animal’s needs. It stands to reason, then, that the total number of pets insured in the U.S. is also growing at a remarkable rate. In 2023, according to the North American Pet Health Insurance Association, the total number of pets insured was 5.7 million – an increase of 17% from just a year before.

Pet insurance has become critically important in offsetting the escalating cost of care. Today, the average incident involving a pet accident or illness can cost hundreds or even thousands of dollars.

A decade ago, an emergency visit to the vet used to cost around $500. Now you can easily spend $1,500 to $3,000 for the same appointment, typically including medication, lab work, and perhaps an X-ray. If your pet develops a chronic health condition, such as hormone imbalances, heart problems, or cancer, the ongoing medical costs can top $10,000 in a given year. Pet insurance premiums, on the other hand, are a fraction of the cost in most cities.

More Employers Now Offer Pet Insurance as an Employee Benefit

Workplace benefits help cover crucial costs for employees and their families. While health insurance, vision coverage, and life insurance are still the most common forms of coverage employees expect, pet insurance is quickly growing in importance.

By some estimates, up to 36% of companies with 500 or more employees now offer pet insurance as a part of their standard benefits package. That figure has grown by about 22% in the last five years alone.

Why Pet Insurance Is an Important Employee Benefit

Employer pet insurance provides a wide range of benefits to today’s workers. With more people working from home in the last few years, the adoption of pets has increased. That has led to the financial need for pet insurance for the simple reason that vet bills are rapidly growing.

Offering pet insurance offers many advantages for both employees and employers:

• Meet the financial needs of a large percentage of your employees. Relieve the financial stressor that can impact employees’ finances at any given time. With most employees having pets, these are very real, widespread concerns.
• Zero cost to the employer. Most, if not all, voluntary pet benefits are 100% employee paid, with no employer contribution required. It’s a cost-effective way to provide access to a service that your employees want and value. 
• Access to comprehensive pet care. Policies range widely but can include access to emergency care, prescription medications, chronic condition management, diagnostics, and hereditary conditions, such as breed-specific concerns not previously diagnosed.
• Pets improve employee mental health. According to the American Heart Association, pets are stress-relievers that help improve overall quality of life and well-being, making them an asset to your workers’ lives.
• Pet insurance can be prohibitively expensive outside of company benefits. Purchasing pet insurance on the commercial market can be costly compared to workplace pet benefits, which often offer discounted rates for employers and tend to be less expensive overall.

There’s value in offering employer pet insurance. The good news is that adding pet benefits to your benefits package doesn’t have to be complicated. By choosing the right pet benefits provider, HR teams aren’t burdened with the process of adding and administering plans.

How to Give Pet Parents the Benefits They’re Asking For

According to a survey by Pet Benefit Solutions, 70% of pet parents felt that their employer did not provide them with the support they needed to care for their entire family – including their pets.

Pet benefits come in a variety of forms, including accident and illness insurance, wellness plans, and even “pawternity” leave to provide access to time off when pets are ill, providing many ways to support employees in caring for their pet families.

A balanced employee benefits program that incorporates pet insurance helps:

• Meet modern employees needs head-on.
• Provide employees with a way to afford the stress-reducing, mental health-boosting benefits of pet ownership.
• Provide access to increased financial security without increasing pay.
• Reduce turnover and improve employee satisfaction, encouraging workers to stay at their jobs
• Promote a positive reputation as an employer that encourages work-life balance.

How Pet Benefit Solutions Can Help

Pet insurance is one of the easiest financial tools to provide to your employees that adds no additional cost to your operations. At Pet Benefit Solutions, we specialize in easy-to-administer pet insurance and pet insurance alternatives that offer seamless onboarding and dedicated HR and broker support. Visit our website to request a proposal today.