Veterinary practices need coverage for malpractice claims, animal-related injuries and expensive equipment failures. Below are the essential insurance types with recommended coverage amounts for each.
What Insurance Do You Need For a Veterinary Business?
You need general liability, workers' comp, professional liability and commercial auto insurance for your veterinary business for full protection.
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Updated: November 24, 2025
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Veterinary Business Insurance Requirements: Key Takeaways
Professional liability insurance is most critical for veterinary practices due to high malpractice claim rates from surgical errors and medication mistakes. (Read More)
Veterinary practices must carry workers' compensation, professional liability and commercial auto insurance as required by law or client contracts. (Read More)
Optional coverage to consider includes equipment breakdown insurance, commercial property insurance and animal bailee coverage.
To maintain compliance, submit proof to your state veterinary board, register DEA controlled substance coverage and update relief staffing platforms quarterly. (Read More)
What Insurance Types Are Needed For a Veterinary Business?
Covers malpractice claims from surgical errors, misdiagnosis, medication mistakes, anesthesia complications and treatment failures that harm animals under your care. Protects veterinary practices from lawsuits alleging negligent care or professional mistakes. | Most veterinary practices need $1 to $2 million per claim with $2 to $3 million aggregate. Large animal hospitals or specialty practices should carry $3 to $5 million. | A veterinarian miscalculated anesthesia dosage during routine spay surgery, causing permanent neurological damage to a dog. The owner sued for $85,000 in ongoing care, $12,000 in emergency treatment and $25,000 in emotional distress, totaling $122,000 plus $18,000 in legal fees. Professional liability insurance covered all costs. | |
Covers bodily injury and property damage claims including client slip-and-falls, animal bites to visitors and damage from escaped animals. Required by most commercial landlords and often needed for municipal business licensing. | Carry $1 to $2 million per occurrence with $2 to $3 million aggregate to satisfy lease requirements. Large corporate clients may require $3 to $5 million in coverage. | An aggressive dog bit a client's child in the waiting room, requiring 15 stitches and causing facial scarring. The family sued for $75,000 in medical bills, $35,000 for plastic surgery and $40,000 for pain and suffering, totaling $150,000 plus $22,000 in legal fees. General liability covered the full amount. | |
Required by law in most states once you hire employees. Covers medical costs and lost wages for animal bites, scratches, needlestick injuries and back injuries from restraining animals. | Your state sets the required coverage amount based on payroll and job classifications. Veterinary technicians fall into higher-risk categories due to animal handling. | A veterinary technician suffered severe lacerations requiring surgery after a frightened cat attacked during an exam. Medical treatment, hand surgery and 6 weeks of lost wages totaled $40,500. Workers' comp covered all costs. | |
Covers diagnostic equipment (X-ray, ultrasound, lab analyzers), surgical instruments, medication inventory and building improvements damaged by fire, theft or natural disasters. Required by landlords and lenders for leased or financed properties. | Coverage should equal full replacement cost of equipment and inventory, typically $100,000 to $500,000 for most practices. Specialty hospitals with advanced imaging may need $750,000 to $1 million. | A burst pipe flooded a clinic overnight, destroying a $95,000 digital X-ray system, $28,000 in medication inventory, $15,000 in computers and causing $35,000 in building damage. Commercial property insurance covered the full $173,000 loss, allowing the practice to reopen within 3 weeks. | |
Equipment Breakdown Insurance | Covers repair and replacement costs when equipment fails from mechanical breakdown, electrical failure or operator error. Standard property insurance excludes mechanical breakdowns, making this essential for X-ray machines, ultrasound systems, autoclaves and anesthesia monitors. | Most practices need $50,000 to $250,000 matching their most expensive equipment. Practices with advanced imaging need $250,000 to $500,000. | A digital radiography system suffered catastrophic motherboard failure on a busy Saturday, requiring complete replacement at $82,000 plus $3,500 for emergency installation. Equipment breakdown insurance covered $85,500 with just a $1,000 deductible, preventing a 4-week closure. |
Animal Bailee Insurance | Covers injury, illness or death of animals in your care for boarding, grooming, post-surgical recovery or daycare when you're found legally liable. Protects practices from claims alleging negligent care of animals beyond active medical treatment. | Boarding facilities typically need $25,000 to $100,000 based on facility size. Practices offering limited overnight recovery should carry $10,000 to $25,000 minimum. | Two dogs fought in a boarding facility's play area, resulting in $8,500 in emergency surgery, $4,200 in hospitalization and $12,000 in legal demands for negligence. Animal bailee insurance covered the $24,700 claim, protecting a boarding contract worth $5,000 monthly. |
Veterinary Business Insurance Requirements
Veterinary practices must carry specific insurance mandated by state law, licensing boards and client contracts. Requirements vary by state and practice type, with penalties for non-compliance including fines, license suspension and personal liability.
Workers' Compensation Insurance | Required by law in most states once you hire your first employee, with penalties including fines up to $10,000 per employee, criminal charges, license suspension and personal liability for all injury costs. Veterinary practices face mandatory coverage due to high injury rates from animal bites, scratches and handling-related injuries. | Your state sets coverage amounts based on workers' compensation laws. Premiums are calculated using payroll and risk classification, with veterinary technicians rated in higher-risk categories. |
Professional Liability Insurance | Required for state veterinary license renewal or initial licensing in several states and mandated by virtually all corporate employers, relief staffing agencies and specialty hospital positions. Some states require proof of malpractice coverage to maintain your license to practice veterinary medicine. | Most state boards and employers require $1 million per claim with $2 million aggregate minimum. Large corporate practices and specialty hospitals often mandate $2 to $3 million per claim. |
Required by law in 49 states for business-owned vehicles used for mobile services, house calls, emergency transport or supply runs, with personal auto policies excluding business use. Operating without commercial auto coverage results in fines, license suspension and personal liability for all accident costs. | State minimums range from 25/50/10 to 30/60/25 split liability limits. Mobile practices and emergency transport services should carry $1 million combined single limit to satisfy state law and client contracts. | |
General Liability Insurance | Commercial landlords require this for lease agreements, lenders mandate it for financed properties and many municipalities need it for business licensing. Most commercial clients including pet resorts, corporate wellness programs and house-call service contracts require general liability before allowing veterinary services on their property. | Standard requirement is $1 million per occurrence and $2 million aggregate. High-value commercial properties may require $3 to $5 million total coverage, while municipal licenses mandate minimum $1 million per occurrence. |
Commercial Property Insurance | Landlords require this coverage for businesses leasing commercial space and lenders mandate it for financed properties to protect their investment in your facility and equipment. Most lease agreements require proof of coverage before you can move equipment into the space or see patients. | Coverage must equal full replacement cost of the building and contents specified in your lease or loan agreement. Requirements range from $100,000 to $500,000 depending on equipment value and facility size. |
Luxury pet resorts, corporate headquarters, large property management companies and high-value venues require umbrella coverage for veterinary service contracts. Corporate wellness programs and large facilities mandate this as add-on coverage to your existing liability limits before approving service agreements. | High-value commercial clients require $3 to $5 million total coverage across all policies. Premium clients including luxury facilities and corporate campuses may mandate $5 to $10 million in umbrella coverage. | |
Animal Bailee Insurance | Some municipalities require bonds for boarding facility licenses and kennel permits, and most commercial boarding contracts with pet resorts, doggy daycares and grooming facilities mandate this coverage. Some states require surety bonds specifically for facilities boarding animals overnight or providing extended care services. | Boarding facility licenses require $10,000 to $50,000 in bonds or insurance coverage. Large commercial boarding contracts may mandate $50,000 to $100,000 based on facility capacity and average daily animal census. |
How To Ensure Veterinary Business Insurance Requirements Are Met
Veterinary practices must prove coverage to state veterinary boards, DEA registries, staffing platforms and municipal agencies after purchasing insurance. Follow these steps to maintain compliance with licensing authorities and booking platforms.
- 1Submit professional liability proof to your state veterinary medical board
Most states require proof of professional liability insurance at annual veterinary license renewal, with some boards verifying coverage before issuing your renewed license. Contact your state veterinary medical board 60 to 90 days before license expiration to confirm their COI submission process, required coverage limits (typically $1 million per claim with $2 million aggregate minimum) and whether they accept electronic or mailed documentation.
- 2Register controlled substance coverage with DEA and state pharmacy boards
Veterinary practices handling Schedule II-V controlled substances must provide proof of theft coverage, fidelity bonds or DEA-specific coverage when registering or renewing your DEA license. Some states require surety bonds of $10,000 to $50,000 filed with state pharmacy boards, with annual renewal documentation due 30 days before expiration.
- 3Update relief veterinarian staffing platforms with current malpractice coverage
Relief and locum veterinarians need to upload professional liability COIs to staffing platforms like Roo and VNDX quarterly or when policies renew. Your profile gets suspended if coverage expires, and you'll lose booked shifts until you upload updated documentation.
- 4Submit animal bailee coverage to municipal boarding facility licenses
Veterinary practices offering boarding, daycare or overnight recovery must provide updated animal bailee bonds or insurance to city or county animal control departments annually for kennel license renewal. Most municipalities require 30 to 60 days' notice before license expiration with proof of $10,000 to $50,000 in coverage, and operating without renewed licenses results in fines of $500 to $5,000 or facility closure.
- 5Verify mobile practice coverage across multiple jurisdictions
Mobile veterinarians and house-call services must confirm their commercial auto and general liability coverage meets requirements in every city or county where they provide services, as municipalities require separate business licenses with location-specific insurance verification. Contact each municipality's business licensing department to confirm coverage requirements before providing services in new jurisdictions and maintain a file of approved COIs for each location.
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About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
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