Here's something most new pet grooming business owners don't realize until they hire their first employee: workers' compensation insurance isn't optional in most states. Whether you're running a boutique salon or a mobile grooming van, once you bring on help, you're required to protect them—and yourself—with workers' comp coverage. And honestly? Given how common injuries are in this industry, it's protection worth having.
Think about what your employees do every day: they're restraining anxious dogs, lifting 80-pound retrievers into tubs, standing on wet floors for hours, and working with sharp tools near moving targets. Bites happen. Backs go out. Someone slips on sudsy tile. Workers' comp covers medical bills and lost wages when these inevitable accidents occur—and keeps you from facing devastating lawsuits.
When Do You Need Workers' Comp?
The answer depends entirely on where your business operates. Every state sets its own rules about when workers' comp becomes mandatory, and they vary wildly.
California, Pennsylvania, and New York take a hard line: if you have even one employee—full-time, part-time, doesn't matter—you need coverage. Period. Florida gives you a bit more breathing room, requiring coverage once you hit four employees. Texas stands alone as the only state where workers' comp is completely optional, though most businesses carry it anyway to avoid liability exposure.
There's another wrinkle: some states require you to purchase coverage through a state fund rather than private insurers. North Dakota, Ohio, Washington, Wyoming, and Puerto Rico all operate monopolistic state funds. If you're grooming dogs in Seattle or Columbus, you don't get to shop around—you buy from the state.
The bottom line? Check your specific state requirements before you hire anyone. Failing to carry required coverage can trigger fines, prevent you from getting business licenses, and leave you personally liable if an employee gets hurt. It's not worth the risk.
What Does Workers' Comp Cost for Pet Groomers?
For pet grooming businesses, you're looking at an average of $88 per month, or about $1,057 annually. That's the national average, but your actual cost depends on several factors that insurers use to calculate risk.
Location makes a huge difference. A grooming salon in North Carolina might pay around $56 monthly, while the same business in New York could pay $75 monthly or more. These variations reflect different state regulations, medical costs, and injury rates.
Your premium is calculated per $100 of payroll. For veterinary and pet grooming businesses under class code 8831, the average rate is about $0.93 per $100 of payroll. So if your annual payroll is $50,000, you'd pay roughly $465 per year. If you grow to $100,000 in payroll, you're looking at around $930 annually.
Mobile groomers tend to pay slightly more—averaging $97 per month or $1,160 annually—because the travel component adds complexity and risk. You're working in unfamiliar environments, dealing with varied home layouts, and facing unpredictable conditions.
What Affects Your Premium?
Understanding how insurers calculate your premium helps you find ways to keep costs down. Here are the biggest factors:
Number of employees is the most obvious one. A solo groomer working from home pays nothing. Add two bathers and a receptionist, and you're now paying for three employees' coverage. More people means more potential claims, so premiums scale accordingly.
Class code determines your base rate. Most pet grooming businesses fall under NCCI code 8831, which covers veterinary hospitals, animal shelters, and pet grooming services. However, if you offer mobile services that include cleaning in clients' homes, you might be classified under code 0917 for residential cleaning services. Pennsylvania and Delaware use code 0959 for broader veterinary and pet services. Getting classified correctly matters—using the wrong code could mean overpaying or, worse, having claims denied.
Claims history plays a major role. If your business has a track record of injuries and claims, insurers see you as high-risk and charge more. This gets formalized through your experience modification rate (EMR or mod rate). A mod of 1.0 is average. Below 1.0 means you're safer than average and get a discount. Above 1.0 means more claims than expected, and you'll pay a premium on top of your premium.
Services offered affect risk assessment. A basic grooming salon offering baths and haircuts presents one risk profile. Add specialized services like handling aggressive dogs, exotic pet grooming, or operating a boarding facility, and insurers see increased exposure. More services often means higher premiums.
Common Workplace Injuries in Pet Grooming
Workers' comp exists because injuries in pet grooming aren't just possible—they're inevitable. Understanding what typically goes wrong can help you create a safer workplace and potentially reduce claims.
Animal bites and scratches top the list. Even the sweetest golden retriever can panic on the grooming table, and cats are basically furry ninjas with knives attached to their paws. These injuries can range from minor scratches requiring basic first aid to serious bites needing emergency room visits, antibiotics, and potentially rabies protocols.
Repetitive strain injuries sneak up over time. Groomers spend hours in awkward positions—bent over tubs, reaching across tables, holding clippers at odd angles. Carpal tunnel, tendonitis, and chronic back pain are occupational hazards. These aren't one-time accidents but cumulative damage that can sideline experienced groomers for weeks or permanently limit their ability to work.
Slips and falls happen constantly in grooming environments. You're working with water, shampoo, and wet dogs shaking all over the floor. One moment of inattention and someone's going down hard. These accidents can cause anything from bruises to broken bones and concussions.
Lifting injuries are particularly common with large breed dogs. Hoisting a wet, uncooperative 80-pound Labrador into a tub can throw out your back in an instant. Even with proper technique, the repetitive lifting takes a toll over time.
How to Reduce Your Workers' Comp Costs
You can't avoid paying for workers' comp if you have employees, but you can control how much you pay. The key is preventing injuries and claims.
Implement comprehensive safety protocols. Require non-slip shoes for all staff. Install rubber mats in wet areas. Train employees on proper animal handling and restraint techniques. Invest in hydraulic tables to minimize lifting. Maintain grooming tools properly to reduce repetitive strain. These aren't just good practices—they're investments that pay dividends through lower insurance costs.
Classify employees correctly. Make sure your insurer knows exactly what each person does. Your receptionist who never touches dogs shouldn't be classified the same as your groomers who work hands-on all day. Accurate classification can significantly reduce your premium.
Create a return-to-work program. When injuries do happen, getting employees back to work quickly—even in modified duty—reduces claim costs and keeps your mod rate down. An employee who can answer phones while recovering from a sprained wrist costs far less than one sitting at home collecting wage replacement benefits.
Shop around for coverage. Workers' comp rates are regulated, but different insurers offer different discounts and programs. Some specialize in pet care businesses and understand your specific risks better than general insurers. Get quotes from multiple providers annually to make sure you're getting the best rate.
Getting Started with Workers' Comp
If you're hiring your first employee or realizing you need coverage, start by verifying your state's specific requirements. Your state's department of labor or insurance website will have clear guidelines about when coverage becomes mandatory and whether you must use a state fund.
Gather information about your business: number of employees, total annual payroll, specific services you offer, and any prior claims history. Insurers will ask for all of this to generate accurate quotes.
Contact multiple insurance agents or brokers who specialize in small business or pet care coverage. Ask specifically about their experience with pet grooming businesses and class code 8831. An agent familiar with your industry can often find discounts and programs you'd never discover on your own.
Workers' compensation might feel like just another expensive requirement for your pet grooming business, but it's actually protection for both your employees and your financial future. A single serious injury without coverage could bankrupt your business through medical bills and lawsuits. With coverage, you're compliant, protected, and able to focus on what you do best—making dogs look and smell amazing.
