Starting a pet insurance company can be a lucrative business venture with the proper planning and execution. There are several things you will need to do in order to get your company off the ground.
Here are the 10 steps you can take to get started on building your very own pet insurance company.
10 Steps to Launching a New Pet Insurance Company
1. Choose Your Type of Pet Insurance Company
The first step in launching a pet insurance company is to identify the type of pet insurance company you want to launch. You might choose from the following types among others:
- A pet health insurance company that reimburses pet owners for their veterinary bills
- A pet life insurance company that pays a lump sum to the owner in the event of their pet’s death
- An accident and illness-only pet insurance company
- A comprehensive pet insurance company that covers both accidents and illnesses, as well as routine care
2. Name Your Pet Insurance Company
Give your pet insurance company an identity so people will think of it as a well-known and respected brand. You can take the name of your pet insurance company from your industry, focus on a geographical location, or use your own name among other options.
The main goal for naming your pet insurance company is to make it sound appealing and trustworthy so that potential customers will want to work with you.
3. Determine Your Pet Insurance Company Business Model
There are several possible types of business models for a pet insurance company including:
Selling insurance policies directly to pet owners
Selling insurance policies through veterinarians or other animal care professionals
Selling insurance policies through online marketplaces
Partnering with another business in the pet industry to sell insurance policies (for example, a pet food company)
No matter which model you choose, make sure that it aligns with your business goals and the products and services you offer.
Read more about choosing the right business model for your pet insurance company.
4. Choose a Legal Form for Your Business
By incorporating your pet insurance company, you will limit your liability. You can incorporate as a Limited Liability Company (LLC), a C Corporation (C-Corp), or an S Corporation (S-Corp). Or you can operate as a sole proprietorship.
The business structure you choose for your pet insurance company will determine the amount of taxes you pay and which state or federal tax forms you need to file.
5. Write a Pet Insurance Company Business Plan
All pet insurance company business owners should develop a business plan.
A business plan is a document that outlines the goals, strategies, and operations of a business. It can be used to secure funding from investors or lenders, as well as to guide the day-to-day operations of the business. The business plan should include information on the company’s products or services, market analysis, financial projections, and management team among other things.
When developing your pet insurance company business plan and strategy, you should think about the following questions your customers might have:
- What is pet insurance?
- What does pet insurance cover?
- How much does pet insurance cost?
- Are pre-existing conditions covered by pet insurance?
- How do I file a claim with my pet insurance company?
- What happens if my pet dies or needs to be put down?
- What is the process for renewing my pet insurance policy?
- How do I cancel my pet insurance policy?
- I’m not sure if I need pet insurance. What should I do?
- I have more than one pet. Do I need to insure them all?
- I’m not sure which pet insurance company is right for me. What should I do?
- I have a question that wasn’t answered here. Who can I contact?
- How do I get started with insuring my pet?
- What are the benefits of insuring my pet?
- What are the different types of pet insurance coverage?
- How much coverage does my pet need?
- What is a deductible?
- How does reimbursement work with pet insurance?
- What is an exclusion?
- I’m ready to insure my pet. How do I sign up?
Answering these types of questions will help you develop a business plan and strategy that meets the needs of your target customers.
Read our article about how to write a pet insurance company business plan.
6. Apply for the Necessary Permits and Licenses
There may be required licenses and permits you need to obtain before launching your pet insurance company.
For example, in order to sell insurance policies, you will likely need to obtain a license from your state’s insurance department.
Additionally, if you plan on selling pet insurance policies online, you will need to comply with the requirements of the law and state regulations. You must also register your pet insurance company as a legal entity with the state where you plan to do business. You can simply file an online form through your Secretary of State website.
Registering with the federal government is also essential so you can properly pay taxes for your business. You will also need an Employer Identification Number (EIN), which you can apply for at the IRS website, if you plan to hire employees.
7. Determine Your Budget & Apply for Funding as Needed
In developing your pet insurance company business plan, you will figure out how much funding you need to start and grow your business.
If you have your own funds to invest in your pet insurance company, you may consider taking advantage of that. In addition to your personal funds, other forms of potential funding for your pet insurance company include traditional bank loans, SBA loans, credit cards, angel investors and family and friends.
Read our article about the costs associated with starting a pet insurance company to help you determine if funding is needed.
Read our article about how to fund your pet insurance company.
8. Get the Technology & Software Needed to Run Your Business Efficiently
When you start your pet insurance company, it’s essential to have the right technology in place to maximize efficiency. You definitely need a computer with Internet access, and accounting software for tracking expenses and revenues.
You may also want to invest in a customer relationship management (CRM) system, which will help you keep track of your current and potential customers. If you plan on selling pet insurance policies online, you will need to have a secure website and shopping cart software.
9. Market Your Pet Insurance Company to Potential Clients
Before you start selling your products and services, you have to let the world know you exist. The first step is to create a website so people can learn more about your products and services and how they benefit them.
After you launch your website, start promoting it through social media channels like Facebook, LinkedIn and Twitter. Also consider networking with other people in the pet insurance industry through social media and blogs so they can help share your business.
You also need to start gathering the materials needed to execute on your promotions strategy, which is your strategy for attracting new customers. Pet insurance businesses should consider the following promotional strategies for which you should start getting prepared:
- Make a commercial featuring a pet that has recently been saved by pet insurance.
- Sponsor a local pet charity event.
- Give a percentage off to customers who sign up for a policy online.
- Run a contest on social media for the best pet photo.
- Provide free consultations to customers about their pet insurance options.
- Give a free month of pet insurance to customers who refer a friend.
Read our article about how to market your pet insurance company for more tips.
10. Get New Clients & Grow Your Business
When you promote your products and services, you’ll start to get interest from potential clients.
Make sure you’re ready to serve these clients. Also, be sure to establish systems to ensure consistency and reduce costs. And be sure to find and train the right people to help you grow your pet insurance company.
Read our article about how to effectively grow your pet insurance company to learn more.
Starting a Pet Insurance Company FAQs
Why Start a Pet Insurance Company?
There are a number of reasons why starting a pet insurance company can be a great business venture. First, the pet industry is growing and is valued at $1.8 billion in 2022. This growth is being driven by trends like the humanization of pets, where people are increasingly treating their pets like family members.
Another reason to start a pet insurance company is that there is a growing awareness of the importance of pet insurance. A study by the American Pet Products Association found that only 4% of dog owners and 2% of cat owners had pet insurance in 2006. By 2016, those numbers had grown to 16% and 8%, respectively.
What is Needed to Start a Successful Pet Insurance Company?
There are a few key things you will need to start a successful pet insurance company. First, you need to have a deep understanding of the pet insurance industry. This includes understanding the different types of pet insurance policies and how they work.
You also need to have a strong marketing strategy in place. This is important because you need to be able to generate awareness for your pet insurance company and attract new customers.
Finally, you need to have the right technology and systems in place. This includes a customer relationship management (CRM) system, which will help you keep track of your current and potential customers. If you plan on selling pet insurance policies online, you will need to have a website and an e-commerce platform.
How Can I Start a Pet Insurance Company From Home?
Starting a pet insurance company from home is a great way to get your business up and running quickly and cheaply. There are a few things you will need to do to get started.
First, you need to set up a dedicated workspace in your home. This should be a quiet area where you can focus on work without distractions.
Next, you need to get the necessary technology and equipment. This includes a computer, printer, and internet connection. If you plan on selling pet insurance policies online, you will also need a website and an e-commerce platform.
Finally, you need to get your business registered with the appropriate government agencies. In the US, this includes registering your business with the IRS and getting a business license.
How Can I Market a Pet Insurance Company Online?
There are a number of ways to market a pet insurance company online. One way is to use search engine optimization (SEO) to make your website more visible in search results. This includes optimizing your website for relevant keywords and phrases, as well as creating blog posts and other content that will help you rank higher in search results.
Also, you can use social media to generate awareness for your pet insurance company. This includes creating and sharing content on platforms like Facebook, Twitter, and Instagram. You can also run ads on social media platforms to reach a wider audience.
Finally, you can use email marketing to stay in touch with current and potential customers. This involves sending out regular newsletters, as well as special offers and discounts.
What are Some Tips for Starting a Pet Insurance Company?
Here are some tips to help you get started with your pet insurance company:
- Research the market. Make sure you have a deep understanding of the pet insurance industry before you get started. This includes understanding the different types of pet insurance policies and how they work.
- Have a strong marketing strategy. You need to generate awareness for your pet insurance company and attract new customers.
- Get the right technology and systems in place. This includes a customer relationship management (CRM) system, which will help you keep track of your current and potential customers. If you plan on selling pet insurance policies online, you will also need a website and an e-commerce platform.
- Register your business. In the US, this includes registering your business with the IRS and getting a business license.
- Stay compliant. Make sure you are following all the rules and regulations that apply to pet insurance companies in your jurisdiction. This includes things like getting the necessary permits and licenses.
Where Can I Find a Simple Checklist for Starting a Pet Insurance Company?
A simple checklist to use when starting a pet insurance company is as follows:
- Choose Your Type of Pet Insurance Firm: This should be based on what you are best at and how much experience you have. Remember to keep your interests, skills, and experience in mind at all times.
- Name Your Pet Insurance Company: This should be done with care, as your brand is important for attracting the right customers. A simple, memorable name will go a long way.
- Choose a Legal Form for Your Business: Whether you choose to become a sole proprietorship, partnership, LLC, corporation or another option will depend on your business. Ensure that you are aware of all the implications of each type.
- Determine Your Pet Insurance Business Model: Determine how your business will make money. Will you sell products, services, or a combination of both?
- Write a Pet Insurance Business Plan: Your business plan will also help you determine what your start-up costs will be and will provide a roadmap with which you can launch and grow.
- Apply for the Necessary Permits and Licenses: In most locations you will be required to apply for a business license and/or permits before you can begin operations.
- Determine Your Budget & Apply for Funding as Needed: You will need to know how much money you have to spend on all of your business-related expenses before opening any doors. If needed, apply for a small business loan or other funding options.
- Get the Technology & Software Needed to Run Your Business Efficiently: You need to have the right tools in place to succeed. Implement software that will help you manage your time, contacts, and business operations in general.
- Market Your Pet Insurance Company to Potential Clients: A solid marketing plan will be crucial to your success. It should focus on attracting the right customers so that you can provide them with the products and services they truly need.
- Get Clients & Grow Your Business: Once you have a solid marketing plan, it's time to actively pursue and secure those who could benefit the most from your products and services.
Summary
Starting a pet insurance company can be a rewarding and profitable business venture. By following these simple tips, you’ll be well on your way to opening and running a successful pet insurance agency.