Whether it’s something traditional like a dog or cat, or more exotic like a pot-bellied pig or chicken, Americans love their pets. According to Pew Research Center, 62% of Americans own a pet, and 35% have more than one. Of those surveyed, 97% consider those pets part of their family.
But taking that pet for veterinary care can be expensive. The average cost of owning a dog in Indiana is $1,522.63, with overall annual vet costs such as wellness checkups and vaccines range from $700 to $1,500, according to Pettable. And if your pet gets sick or has special needs, that amount can grow significantly.
That’s why more employers are offering pet insurance as part of their voluntary employee benefits offerings. Last year, nearly 1 in 5 (19%) of employers offered the benefit, up from 14% in 2022, according to SHRM's 2023 Employee Benefits Survey. And consulting firm Mercer found that in 2022, 36% of employers with more than 500 workers provided pet insurance options to staff, up 22% from 2017.
Pet insurance works like employer-sponsored health insurance, and can offset the cost of licensed vet visits, exam fees, diagnostics, prescriptions, vaccinations, surgeries, and more.
Employers can offer the coverage by either providing access to an insurance plan employees pay for out of pocket, often at a discounted premium, or by covering the cost with a stipend employees can apply to buy their own pet insurance.
Like health insurance for people, pet insurance typically features an out-of-pocket deductible, usually under $1,000; after meeting the deductible, pet insurance pays a percentage of the cost for eligible expenses. The percentage varies between 50% and 100% based on the insurance provider and policy type. And like human health insurance, pet insurers pay only up to a certain amount each policy period. Once an employee reaches that limit, they won't receive any more reimbursements for that year.
Insurance for household pets comes in three plan types: accident-only plans, which are the cheapest; comprehensive plans, which offer coverage for chronic diseases and congenital conditions; and wellness plans, the most expensive, which include preventative care, dental cleanings, vaccinations, and more.
When employers offer their workers a stipend to apply to buy their own pet insurance, the question still is on what coverage is best. Based on a review of several pet insurance providers in Indiana, MarketWatch Guides recommends Lemonade, Spot, and Embrace as the top providers in the state.
MarketWatch’s review methodology was based on a combination of cost, plans, customer coverage levels, customer experience, waiting periods, reputation, and eligible age limit. For Indiana pet owners, they found Lemonade to have the cheapest plan for dogs, while Spot offered the most customizable coverage, and Embrace was the best for overall savings.
There are other options for employers as well. For example, Indiana University doesn’t offer a pet insurance benefit directly, but does offer its employees a premium membership to Care.com, which includes access to discounts for pet insurance, among other goods and services.
