General Liability Insurance: This is your starting point. It covers damages you may have to pay if your business is responsible for harm to a third party. For a dog daycare, this could cover situations where a dog injures a person or damages someone’s property.
In addition you may need:
Professional Liability Insurance: Also known as errors and omissions insurance, this covers claims of negligence in the services you provide. For example, if a dog were to get sick or injured while in your care, and the owner claimed it was due to your negligence, professional liability insurance could cover the costs of the claim.
Animal Bailee’s Coverage: This is a special type of coverage for businesses that take in clients’ animals for care or transport. It covers damage to animals that are in your care, custody, or control. If a dog were to get injured or become sick while at your daycare, animal bailee’s coverage could cover the costs.
Workers Compensation Insurance: If you have employees, most states require you to have this type of insurance. It covers medical expenses and lost wages if an employee is injured on the job. Considering that working with dogs can sometimes lead to injuries, this is an important coverage to have.
Property Insurance: This covers damage to your business property from causes like fire, storms, and vandalism. It can cover not only your building, but also the contents like equipment and supplies.
Business Interruption Insurance: If a covered event (like a fire) forces you to temporarily close your business, this insurance can cover your lost income during that period.
Commercial Auto Insurance: If you offer services like pet transportation or pick-up and drop-off services, commercial auto insurance can cover damages related to any vehicles used for business purposes.