Coverage Basics, Common Gaps, and How to Choose the Right Insurance
Time To Pet is not an insurance company, our team members are not professional insurance agents, and we do not sell insurance products. This article is meant to act as a guide to help doggy daycare and boarding business owners understand common insurance options and to direct them to where they can find additional information. Time To Pet does not endorse any insurance company or product.
If you also offer in-home pet sitting or dog walking services, you may want to read our guide to pet sitting insurance as well.
Quick Summary: Insurance Most Facilities Need
Running a dog boarding or doggy daycare business means managing group environments, ensuring staff safety, maintaining facilities, and, most importantly, providing for dogs entrusted to your care. Even with strict protocols and experienced staff, accidents and unexpected situations can happen.
This guide breaks down the most common insurance policies for facility-based dog care businesses, explains how daycare and boarding needs differ, and offers practical tips for choosing coverage that fits your operation.
Most dog boarding and doggy daycare businesses carry:
- General liability insurance
- Care, Custody, and Control (CCC) or animal bailee coverage
- Commercial property insurance (often through a Business Owner’s Policy)
- Workers’ compensation insurance (if you have employees)
- Commercial auto insurance (if you transport pets)
The right insurance coverage helps protect your business financially, supports long-term stability, and gives pet parents confidence that their dogs are in responsible hands.
Running a pet care business? See how Time To Pet helps dog daycare and boarding teams save time and grow revenue with a free trial today!
Why Daycare and Boarding Insurance Is Different Than Pet Sitting Insurance
Dog walking and pet sitting typically happen in a client’s home or on leash in public spaces. Doggy daycare and boarding facilities introduce a different risk profile altogether.
Pet care facilities generally involve:
- Multiple dogs interacting in shared spaces
- Staff handling dogs throughout the day
- Physical buildings, equipment, and play areas
- Overnight care (for boarding businesses)
Because of this, insurance providers often require broader coverage for kennels and daycare facilities compared to mobile pet sitters or dog walkers. Policies must account for group play, higher volumes of dogs, employee exposure, and property risk.
Core Insurance Policies for Dog Daycare & Boarding Businesses
General Liability Insurance
General liability insurance is the foundation of most business insurance packages. It typically covers third-party bodily injury or property damage related to your business operations. Examples include:
- A client slipping in your lobby during drop-off
- A dog biting a customer or visitor on your premises
- Property damage caused during normal operations
While general liability is essential, it usually does not cover injuries or illnesses to dogs in your care, which is why additional coverage is critical for pet care facilities.
Care, Custody, and Control (CCC) / Animal Bailee Coverage
Care, Custody, and Control (often called CCC or animal bailee coverage) is one of the most important—and misunderstood—types of insurance for dog care businesses.
In the U.S., pets are legally considered personal property. Many general liability policies exclude damage to property in your “care, custody, or control,” which means injuries or illness to dogs may not be covered unless you have specific pet-related coverage.
CCC or animal bailee coverage may help with:
- Veterinary bills if a dog is injured or becomes ill while in your care
- Certain losses involving animals under your supervision
When reviewing policies, pay close attention to:
- Coverage limits
- Deductibles
- Whether coverage applies to illness, injury, or both
- Any exclusions related to group play or unattended time
Commercial Property Insurance (Often Through a BOP)
If you operate out of a physical facility, you’ll also want coverage for your building and equipment. Many small businesses use a Business Owner’s Policy (BOP), which typically bundles:
- General liability insurance
- Commercial property insurance
Some BOPs also include business income coverage, which may help replace lost income if you’re forced to temporarily close due to a covered event like a fire, storm, or vandalism.
This can be especially important for facilities with high fixed costs such as rent, utilities, and payroll.
Workers’ Compensation Insurance
If you have employees, workers’ compensation insurance may be required by your state. Workers’ comp generally helps cover:
- Medical expenses for work-related injuries
- Lost wages while an employee recovers
Dog daycare and boarding work is physical by nature. Employees may be exposed to lifting injuries, slips, bites, or repetitive strain, making this coverage an important part of your risk management plan.
Professional Liability (Errors & Omissions)
Professional liability insurance (sometimes called errors and omissions (E&O)), may help cover claims related to alleged negligence or mistakes in how services were performed. This coverage may be relevant if:
- A client alleges improper supervision
- A dog is injured and the owner claims negligence
- You offer additional services such as training refreshers or evaluations
Commercial Auto Insurance
If your business transports dogs using a company-owned vehicle—whether for pickups, drop-offs, or off-site activities—you may need commercial auto insurance. Personal auto policies often exclude business use.
Cyber Liability Insurance
If you store client information, contracts, or payment details digitally, cyber liability insurance may help cover costs associated with data breaches, system recovery, and notification requirements.
Doggy Daycare vs. Dog Boarding: How Insurance Needs Can Differ
Doggy Daycare Insurance Considerations
Daycare businesses often involve:
- High-energy group play
- Frequent staff interaction
- High client traffic during peak hours
Insurance policies should clearly address:
- Dog-on-dog incidents during group play
- Staff injuries
- Bite liability
Ask insurers whether coverage explicitly applies to group environments.
Dog Boarding Insurance Considerations
Boarding businesses typically involve:
- Overnight stays
- Longer periods of responsibility
- Increased likelihood of medical issues
When reviewing coverage, confirm:
- How policies apply during overnight hours
- Emergency veterinary coverage details
- That coverage limits align with your maximum overnight capacity
Choosing the Right Insurance Policy
When comparing policies, don’t focus solely on price. Ask insurers:
- Does the policy clearly cover dogs in my care?
- Are group play and overnight stays included?
- Do coverage limits realistically match my facility size?
- Are employees and vehicles covered if applicable?
Working with an insurer familiar with pet care businesses can make this process much smoother.
Continue Building a Strong Foundation
Insurance is just one part of running a successful dog care facility. If you’re still planning or refining your business, these guides may help:
And if you also provide in-home services, don’t miss our guide to pet sitting insurance.
Protecting your business goes beyond insurance
Insurance helps manage risk, but clear communication, organized records, and consistent processes help prevent issues in the first place.
Time To Pet gives dog daycare and boarding businesses the tools they need to stay organized and communicate clearly with pet parents.
Time To Pet helps thousands of pet care businesses generate millions in revenue each month. See how by starting your free trial today!
FAQ
Is general liability insurance enough for dog daycare or boarding?
Often no. General liability may not cover injuries or illnesses to dogs in your care without Care, Custody, or Control (CCC) or animal bailee coverage.
Do I need insurance even if clients sign waivers?
Yes. Waivers can help set expectations, but usually don’t replace insurance or legal defense coverage.
Does insurance coverage differ if I offer both daycare and boarding services?
Yes. You’ll want coverage that reflects group play, overnight care, staffing, and maximum capacity.
How often should I review my insurance coverage?
At least annually, or whenever you change services, staffing, or facility size.
Insurance Resources
- Time To Pet: Your Definitive Guide to Pet Sitting Insurance
- Insureon: Kennel & Pet Daycare Insurance
- The Hartford: Business Owner’s Policy (BOP)
- NAPPS: Care, Custody, and Control Explained
