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- More employers are adding pet health insurance, stipends, and pet-friendly policies to their employee benefits packages.
- The demand for pet health coverage has surged as rising vet costs make insurance an increasingly vital support for pet owners.
- Offering pet-related perks helps companies attract and retain top talent, improving job satisfaction and loyalty.
Health insurance is difficult enough to obtain and afford, but traditional policies don’t even cover the expensive health needs of cherished family members in millions of U.S. households — pets.
Thankfully, among the most surprising (and heartwarming) workplace trends for the new year is the rise of pet-related benefits.
More and more employers are stepping up by offering pet health insurance and other pet-related perks as part of their employee benefits packages.
Pets have long been referred to as the “forgotten dependents.” While millions of U.S. workers are pet owners, the majority of those pets remain without insurance coverage.
As employees finalize their health and retirement benefits for 2025, many will find that their pets are now eligible for health coverage as well.
Pet Benefits Are on the Rise
It’s no secret that employees are looking for more than just a salary in their compensation packages.
As employers compete to attract and retain top talent, the range of benefits offered is expanding, and pets are more often now part of the equation.
An increasing number of companies are including pet-related benefits in their offerings, recognizing that employees’ furry family members are an important part of their lives.
These benefits can range from healthcare coverage for pets to stipends that help offset the costs of pet care.
Additionally, some workplaces are embracing pet-friendly policies, such as allowing employees to bring their pets to work, or offering flexible work hours to accommodate pet care needs.
Surge in Pet Health Insurance
Among the most popular pet-related benefits is health insurance coverage.
According to Spot Pet Insurance, there has been a significant uptick in “open enrollment” policy adoptions.
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Pet health insurance plans are becoming more common, and employees are taking advantage of these opportunities to ensure their pets receive the care they deserve.
This increase in pet health insurance adoption is particularly notable given the rising costs of veterinary care.
The average vet bill in the U.S. has risen by nearly 8% in 2024, which means that many pet owners are finding it harder to manage their pets’ medical expenses.
Pet insurance helps alleviate some of these financial burdens by covering medical costs such as routine exams, vaccinations, surgeries, and emergency care.
Scott Taylor, President of Spot Pet Insurance, told Allwork.Space that more companies are incorporating pet-related benefits into their employee packages because “Pets are no longer just companions — they are family. As over 70% of U.S. households include a pet, employers are recognizing the significant role pets play in their employees’ lives. Offering pet-focused benefits isn’t just a nice-to-have; it’s becoming a vital part of comprehensive wellness initiatives.”
Taylor also highlighted that traditional benefits often overlook the unique challenges faced by pet owners.
From dealing with unexpected veterinary costs to balancing work responsibilities with pet care, employees increasingly seek workplaces that accommodate their furry family members.
This trend accelerated during the COVID-19 pandemic, which saw a surge in pet ownership and a shift in employee expectations.
“Pet insurance, stipends for pet care expenses, and flexible or remote work options are just a few ways companies are stepping up to meet this need,” Taylor said.
He also emphasizes the importance of pet-friendly workplaces, where employees can bring their pets to the office or access dedicated pet spaces.
“These initiatives don’t just address financial and logistical concerns — they enhance overall job satisfaction and reduce stress, fostering a more engaged and loyal workforce,” he said.
The Growing Demand for Pet Health Coverage
The demand for pet insurance has been steadily increasing.
There are now over 6.25 million pets insured across North America, which is a 20.9% increase from the 5.17 million pets insured in 2022, according to the North American Pet Health Insurance Association.
As more employees seek out this benefit, pet insurance is becoming an essential part of many employees’ healthcare packages.
This trend is not just limited to large corporations.
Small and medium-sized businesses are also jumping on the bandwagon, offering pet insurance as a way to attract and retain loyal workers.
For pet owners, this perk can be a game-changer, offering peace of mind and financial support for their pets’ well-being.
The Bottom Line: Employees and Pets Benefit
As businesses compete for top talent, offering pet-related benefits has proven to be a differentiator.
According to Taylor, “Companies that embrace pet-inclusive policies signal that they value employees’ whole families, creating a culture of care and belonging. It’s not just about perks — it’s about acknowledging the role pets play in modern family dynamics and building benefits that reflect today’s workforce realities.”
The introduction of pet health insurance as an employee perk is a win-win.
Employees get the security of knowing their pets are covered in times of need, while employers can differentiate themselves by offering a benefit that aligns with modern values — work-life balance, health, and well-being.
Closely intertwined with mental wellness, dogs can even help improve physical health, which can lower overall health insurance costs for employers. Scientific research has tied petting a dog with reduced cortisol levels, the biggest stress hormone found in humans.
Research has shown having a dog around can lower blood pressure, while also encouraging breaks and exercise throughout the day. For those who work long hours at a desk, this is critical to their creative output.
As more companies include pet-related perks in their benefits packages, it’s clear that pets are no longer the “forgotten dependents” — they’re an important priority of the employee benefits equation.
As the trend continues to grow, it’s likely that more employers will look for creative ways to support their employees’ furry companions, making it easier than ever for workers to enjoy both a successful career and a healthy, happy pet at home.
Whether it’s pet insurance, pet stipends, or pet-friendly workplaces, this new benefit is helping both employees and their pets thrive.
