Running a veterinary practice means you're juggling a lot—caring for animals, managing staff, keeping clients happy, and somehow finding time to handle the business side of things. Here's something that often gets pushed to the back burner: insurance. And honestly? That's a risky move. With more than 2,000 veterinary malpractice cases filed every year in U.S. courts, the right insurance coverage isn't just a nice-to-have. It's what keeps your practice standing when things go wrong.
Whether you're opening your first clinic or you've been practicing for years, understanding what coverage you actually need can feel overwhelming. Let's break down the essential insurance policies for veterinary practices and what each one does to protect your business.
Professional Liability Insurance: Your First Line of Defense
Here's something that surprises many veterinarians: if you're an employee at a practice, your employer's professional liability policy doesn't cover you. You need your own individual policy. Think about it—if a client claims you misdiagnosed their pet or that a surgical error occurred under your care, you're personally on the hook for legal fees and potential settlements without your own coverage.
Professional liability insurance (also called malpractice insurance) covers claims related to errors in your professional judgment or care. For 2025, AVMA PLIT offers coverage with limits of $1 million per claim and $3 million annually for just $476 per year for small animal exclusive practitioners. That's less than $40 a month to protect your career and personal assets. The policy also includes license defense coverage, which pays for legal representation if your veterinary license is challenged.
General Liability and Property Coverage: The BOP Advantage
General liability insurance handles the stuff that happens outside of your medical expertise. A client slips on your wet floor and breaks their wrist. A dog bites another dog in your waiting room. Your employee accidentally damages a client's car while moving their pet. These scenarios aren't about malpractice—they're everyday business risks. General liability coverage typically handles bodily injury and property damage claims, plus the legal costs if you're sued.
Most small veterinary practices benefit from bundling general liability with commercial property insurance into a Business Owner's Policy (BOP). This is usually cheaper than buying the policies separately. A BOP for veterinary practices averages $67 per month, though you can find policies as low as $33 monthly with providers like biBerk. The property coverage portion protects your building, equipment, inventory, and furniture from damage or loss due to fire, theft, vandalism, or covered weather events. When you consider how much you've invested in surgical equipment, diagnostic tools, and medications, property coverage becomes a no-brainer.
BOPs also typically include business interruption coverage. If a fire forces you to close for repairs, this coverage replaces lost income and helps cover ongoing expenses like rent and payroll while you're shut down. Veterinary clinics generate revenue through consistent patient visits, and even a temporary closure can devastate your cash flow.
Workers' Compensation: Required in Most States
As of 2016, veterinary service professionals were the second most likely to be injured on the job. Your team faces real risks—animal bites, scratches, exposure to medications and anesthesia, lifting injuries from handling large animals, and repetitive strain from holding animals during procedures. Workers' compensation insurance covers medical expenses and lost wages when employees get hurt at work, and it protects you from being sued by injured workers.
Most states legally require workers' comp once you hire employees, though the specific thresholds vary. New Jersey requires coverage if you have even one employee. Florida requires it for general businesses with four or more employees. Georgia and Florida have specific exemptions and thresholds based on business type and employee count. For veterinary practices, the average cost is $0.93 per $100 of payroll in 2025. So if your annual payroll is $200,000, you're looking at roughly $1,860 per year—a small price compared to the cost of a workplace injury lawsuit.
Specialized Coverage: Cyber, Employment Practices, and Umbrella
Cyber insurance has become essential for modern veterinary practices. You store client contact information, credit card data, and detailed medical records for patients. A data breach doesn't just compromise privacy—it can cost you thousands in notification requirements, credit monitoring services for affected clients, legal fees, and system restoration costs. Cyber insurance covers these expenses and helps you manage the fallout from a breach or ransomware attack.
Employment Practices Liability Insurance (EPLI) protects you from claims by current or former employees alleging discrimination, harassment, wrongful termination, or other employment-related issues. Veterinary practices often have diverse teams, and even with the best intentions, employment disputes can arise. EPLI covers legal defense costs and settlements for these claims.
Umbrella insurance provides an extra layer of protection when claims exceed your other policy limits. Say you have $1 million in general liability coverage, but a lawsuit results in a $2 million judgment. Without umbrella coverage, you'd pay the extra million out of pocket. An umbrella policy kicks in to cover that gap, usually at a relatively low additional cost.
How to Get the Right Coverage for Your Practice
Start by assessing your specific risks. A small-animal clinic in a strip mall has different needs than a large-animal practice with mobile services or an emergency veterinary hospital. Consider your location, types of services offered, number of employees, and the value of your equipment and inventory.
Work with an insurance broker who specializes in veterinary practices. They understand the unique risks you face and can help you find coverage from providers experienced in the veterinary field, like AVMA PLIT, The Hartford, or Vetinsure. Don't just buy the minimum required coverage—think about what would actually protect your business if something went wrong. Compare quotes from multiple providers, but don't choose based solely on price. Look at coverage limits, deductibles, exclusions, and the insurer's reputation for handling claims.
Review your coverage annually. As your practice grows, your insurance needs will change. You might add services, hire more staff, purchase expensive new equipment, or expand to a second location. Each of these changes affects your risk profile and coverage requirements. Your insurance should grow with your business, not stay static from the day you opened your doors.
