Here's something most new pet groomers don't realize until it's too late: one lawsuit can wipe out everything you've built. A dog gets nicked during a trim, develops an infection, and suddenly you're facing a $15,000 vet bill plus legal fees. Or a customer slips on your wet floor and breaks their wrist. Without the right insurance, these everyday risks can end your business.
The good news? Pet grooming insurance doesn't have to be complicated or expensive. Most groomers pay between $300-700 annually for solid general liability coverage. This checklist breaks down exactly what you need, what's optional, and when to upgrade your coverage as your business grows.
Essential Coverage: What Every Pet Groomer Must Have
These three coverages form the foundation of your protection. Skip any of these, and you're taking serious financial risks.
General liability insurance is your first line of defense. It covers third-party injuries and property damage—like when a customer trips over your grooming table cord or their purse gets damaged by water in your salon. This policy typically provides $1 million per occurrence and $2 million aggregate coverage, costing around $50-64 per month. Most landlords and commercial leases require this coverage before you can even open your doors.
Professional liability insurance (also called errors and omissions) protects you from grooming-specific claims. This is the coverage that kicks in when a pet owner says you cut their dog during a trim, used the wrong products, or provided substandard service. Even if the claim is completely baseless, you'll need to defend yourself in court—and legal fees alone can cost tens of thousands. This coverage runs about $55 monthly and is absolutely non-negotiable for anyone touching scissors to fur.
Animal bailee coverage (sometimes called care, custody, and control insurance) handles the worst-case scenarios: a pet gets injured, lost, stolen, or dies while in your care. Standard policies don't cover animals under your supervision—that's what makes bailee coverage so critical. Coverage typically starts at $2,500-5,000 per occurrence with a $10,000 aggregate limit. When a panicked owner discovers their dog escaped during pickup and got hit by a car, this coverage pays for veterinary bills, reward costs for finding lost pets, and legal defense if you're sued.
Legally Required Coverage: Don't Skip These
Workers' compensation insurance becomes mandatory the moment you hire your first employee in almost every state. This isn't optional—operating without it can result in hefty fines, lawsuits, and even criminal charges in some jurisdictions. Workers' comp covers medical bills and lost wages when an employee gets hurt on the job, whether it's a dog bite, a slip on a wet floor, or a repetitive stress injury from grooming.
Commercial auto insurance is legally required if you operate a mobile grooming business or transport pets in your vehicle. Your personal auto policy explicitly excludes business use, meaning if you get into an accident while driving to pick up a client's dog, your claim will be denied. Mobile groomers should carry at least $1 million in combined single limit liability with comprehensive and collision coverage. This protects both the vehicle and your expensive grooming equipment inside.
Optional But Valuable Coverage to Consider
Commercial property insurance protects your physical business assets—grooming tables, dryers, clippers, shampoos, and salon furniture. If a fire destroys your location or a burst pipe ruins your equipment, this coverage replaces everything. It also includes business interruption coverage, which pays your ongoing expenses and lost income while you rebuild. For groomers with significant equipment investments or brick-and-mortar locations, this coverage provides crucial peace of mind.
Cyber liability insurance has become increasingly important as more groomers use online booking systems, store customer credit cards, and maintain digital client records. A data breach exposing customer information can lead to notification costs, credit monitoring services, legal fees, and regulatory fines. If you process payments online or store any customer data electronically, this coverage is worth considering—especially since premiums are relatively affordable for small businesses.
Employment practices liability insurance (EPLI) protects you from employee lawsuits alleging discrimination, wrongful termination, harassment, or other workplace issues. While you might think your small team would never sue, employment claims have skyrocketed in recent years—and defending yourself costs thousands even if you win. Once you have three or more employees, EPLI becomes a smart investment.
When to Add or Upgrade Coverage
Your insurance needs evolve as your business grows. Here are the key triggers for adding or increasing coverage:
Add workers' comp immediately when hiring your first employee—don't wait even one day. Increase your general liability limits when you sign a high-value client or contract that requires higher coverage amounts (some corporate clients or pet stores require $2 million or more). Add commercial property insurance when your equipment value exceeds $10,000 or when you sign a lease for a physical location. Consider umbrella coverage when your business revenue exceeds $500,000 annually or when you start grooming aggressive breeds or exotic animals that carry higher liability risks.
Mobile groomers should add inland marine insurance when transporting expensive equipment between locations. This coverage protects your tools and supplies while in transit, filling a gap that standard commercial property policies leave open.
Annual Review Checklist: Stay Protected
Set a calendar reminder to review your insurance every year, ideally 60 days before renewal. Here's what to check:
Update your revenue numbers with your insurer—underreporting can void your policy. Verify your employee count is accurate for workers' comp pricing. Review your equipment inventory and update property coverage limits if you've purchased new tools. Check whether your current liability limits still match your largest client contracts. Compare quotes from at least three insurers to ensure competitive pricing. Document any new services you've added (like pet sitting, training, or daycare) since these may require additional coverage.
Don't forget to review your certificate holders list—make sure your landlord, any corporate clients, and business partners receive updated certificates of insurance showing they're named as additional insureds.
How to Save Money Without Sacrificing Protection
Bundling multiple policies with one insurer through a Business Owner's Policy (BOP) can save you 18-25% compared to buying each coverage separately. A typical BOP combines general liability, commercial property, and business interruption coverage at a discounted rate. For 2026, complete bundled packages for pet groomers average around $213 monthly, compared to $250-280 if purchased separately.
Installing security systems, fire alarms, and surveillance cameras can qualify you for premium discounts. Completing professional certification programs and safety training also demonstrates lower risk to insurers. Some carriers offer discounts for claims-free years, so maintaining strong safety protocols and careful grooming practices literally pays dividends over time.
The right insurance doesn't just protect your business—it protects your peace of mind. When you've got solid coverage in place, you can focus on what you do best: making pets look and feel great. Start by getting quotes for general liability, professional liability, and animal bailee coverage. Compare at least three insurers, ask about bundling discounts, and make sure you understand exactly what's covered and what's not. Your business is worth protecting properly.
