Employers that offer pet insurance
More and more employers are adding pet insurance as part of
employee benefits, and pet owners have Millennials to thank. According to Fortune the
extra boost in coverage is partly because it appeals to the Millennial
generation, but everyone will benefit from this way of thinking. With pets being
treated more like family members, employers could have a lot to gain from
offering pet insurance to employees.
Employers that offer pet insurance
Photo by U.S. Army flickr
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According to the American Pet Products Manufacturers
Association (APPA), pet
owners spent approximately $9.8 billion on veterinary care in 2007. In
2015-2016 APPA’s biennial National Pet Owners Survey that recorded 79.7 million
pet owning households, this is a 50 percent gain over the past two decades.
They also reported an increase in new/younger pet owners. It’s no surprise that
pet insurance is becoming more popular. Diagnosing and treating an illness can
be expensive. Accidents are especially expensive, and situations like a hit by
car or a blocked cat can cost well over $1000. As the cost of treatment
increases, so does the demand for insurance coverage.
That being said, insured pets are still far and few between
in the US. Nationwide Insurance (Veterinary Pet Insurance; VPI) reports that
only 2% of Americans insure their fur-family. This is a small number if you
compare this to 23% of pet owners in the UK that have pet insurance, and 30% in
Sweden.
Nationwide reports that 1 in 3 Fortune 500 companies now
offer their employees pet insurance, not only as a way to appeal to new hires
but also to keep their current staff happy. This is a way to offer coverage to
the entire family- no one is left out. According to Nationwide this has boosted
growth in the pet insurance industry in the US to more than 15%.
Chipotle Mexican Grill, Hewlett-Packard, Levi Strauss &
Co., Microsoft, T-Mobile, Xerox, Adidas and Yahoo! all offer VPI (Nationwide
Insurance) to their employees. Del Monte, MGM Grand Nevada, Comcast Corp., Home
Depot, the Walt Disney Co. and Sprint are also offering pet insurance as part
of their employee benefits. Company pet insurance is not always automatically
included in the benefits package; employees are able to opt in if they choose. But
according to VPI less than 5% of employees actually sign up for the pet
insurance offered by their employers. In many cases the pet insurance costs the
employer nothing, as the employee pays for the entire monthly fee.
There are some important differences between group
insurance; purchased as part of a benefits package, and individual insurance.
With group insurance you are likely to pay a lower monthly fee, but the risk of
fee being raised is greater because the cost is based on the entire group.
Individual insurance may cost more, but a hike in your monthly fee is usually
based on your pet’s medical history. With individual insurance you can tailor
your plan and policy to fit your pet, lifestyle and expectations of the
coverage. With the group insurance you get the plan that has been selected for
the group, and do not get to determine the plan terms and policy.
The American Veterinary Medical Association (AVMA)
reported that in 2012 36.5% of households owned a canine companion, and 30.4%
owned a feline friend. Those numbers have likely gone up since then. Pets are a
part of the family. Shouldn’t they be insured like the rest of the family?
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