Strengthening Your Clients’ Benefits Packages with Pet Insurance

Quick look: Two-thirds of U.S. households own a pet, and employees who are satisfied with their benefits are five times as likely to be loyal to their companies. Together, these statistics signal the power employer-sponsored pet insurance can provide clients.  Here’s what you need to know about pet insurance, including the advantages for small- and medium-sized businesses (SMBs), and how a PEO can add it to your portfolio.

If you’re looking for the next employee benefit to add to your broker toolkit, pet insurance could be the answer. Forbes reports that 66% of Americans own a pet, and a similar number of workers are more likely to stay with a company if satisfied with their benefits. This makes pet insurance a valuable perk to pitch to clients.

Let’s examine the pet insurance industry in more detail and explore three key benefits your SMB clients could experience by offering coverage to their workforces.

How does pet insurance work?

What’s covered by a pet insurance policy depends on the specific plan.

Most comprehensive policies cover wellness exams, shots, chronic conditions, and acute injuries and illnesses. These plans are helpful, but expensive veterinary bills can still occur if a pet faces severe medical problems. For those situations, policies also exist that cover accidents, severe illness, and hereditary conditions, as well as basic care like flea prevention.

The North American Pet Health Insurance Association (NAPHIA) estimates that 6.25 million American pets are insured, with a total premium amount of nearly $4 billion. Additionally, per NAPHIA, the most common pet insurance claims for dogs include:

• Gastrointestinal issues
• Skin conditions (infections, allergies, dermatitis, masses)
• Urinary tract, kidney, and bladder concerns
• Otitis/ear infections
• Allergies

For cats, the five most frequently reported claims were:

• Urinary tract, kidney, and bladder problems
• Gastrointestinal issues
• Respiratory concerns
• Dental disease
• Skin conditions (infections, allergies, dermatitis, masses)

The need for, and rise of, employer-sponsored pet insurance

Recent research signals that only one-quarter of U.S. pets are insured. Further, it’s estimated that  a pet owner receives a bill of $1,000 or more every six seconds, and the annual cost of owning a cat or dog can creep into the thousands.

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 22% of organizations now offering coverage (versus 14% in 2022).

These statistics demonstrate that the pet insurance market is ripe with opportunities for brokers looking to align clients with low-cost, high-impact voluntary benefit plans.

3 benefits of pet insurance for employers

While pet insurance focuses on keeping animals healthy (and their parents’ bills lower), it can also benefit the employers who offer it. Here’s how:

1. Enhances talent acquisition and retention

Pet insurance is a powerful perk that can help employers win over job candidates and retain their current workforce.

According to Forbes research, 40% of employers believe their staff might leave for better benefits offered elsewhere, while 10% of workers would take a pay cut in exchange for improved offerings.

Additionally, a 2023 Nationwide report found that 85% of people with access to pet insurance through their employer believed their company provided “great benefits,” and 84% described the plans as “competitive.”

2. De-stresses employees

An estimated 66% of U.S. employees have experienced burnout in 2025, with younger generations feeling the most stressed.

Pets can help. Having a furry friend can improve your physical and mental health. Per the American Heart Association, pet ownership is associated with:

• Increased fitness levels (those who walk their dogs get up to 22 minutes more exercise a day than non-walkers)
• Lower blood pressure and cholesterol levels
• Increased happiness and overall well-being

With over 75% of Americans anxious about their finances, pet insurance can also help ease this strain. Employees are more likely to focus and relax at work when they know they have an insurance policy that will enable them to provide their pets with affordable, high-quality care when needed.

3. Strengthens company culture

Pet insurance also allows small businesses to offer a benefit that aligns with their corporate values and can enhance their company culture. By providing access to affordable pet care, employers tell their workforce, “I care about your entire family, I care about your well-being, and I care about your financial peace of mind.”

Businesses can extend their pet-friendly stance by establishing pet owner clubs, hosting pet-friendly company events, providing pet-related corporate swag, or donating and matching employee donations to local animal rescue organizations.

Driving “pawsitive” change for clients with a PEO partner

More and more workers are looking to access pet insurance policies through their employers, and brokers can help.

By partnering with a professional employer organization (PEO) like ExtensisHR, you can offer your clients affordable access to top-rated pet insurance plans, as well as other voluntary benefits, including:

• Supplemental health insurance, including accident, life, critical illness, and hospital indemnity insurance
• Financial and legal advisement programs
• Identity theft protection
• Commuter benefit programs
• Family-forming support
• Cancer care resources
• Discount programs
• And more

Further, ExtensisHR’s employee benefits experts simplify clients’ HR processes by providing comprehensive planning, administration, and management solutions. That high caliber of support extends to workers, with a customer service team offering what other PEOs can’t: a human response in 10 seconds or less, with a 95% same-day resolution rate.

Looking to help your clients fetch better business results? ExtensisHR’s top-tier benefits plans and expert support can deliver those outcomes. Contact us today to learn more about a partnership.