Workers' Compensation Insurance for Veterinary Businesses: A Complete Guide
Workers' compensation insurance for veterinary businesses protects your employees if they get injured on the job. Whether you run a veterinary hospital, animal shelter, or pet grooming business, understanding the proper class code ensures your employees are covered while preventing you from overpaying.
What are Class Codes and why do they matter?
Insurance class codes are four-digit numbers used to reference details about specific job roles. These codes and data are assigned by the National Council on Compensation Insurance (NCCI). The NCCI examines how often workers in each job experience injuries and uses this data to determine the risk for each class code. This helps insurance companies calculate workers' comp rates for veterinary businesses.
Class codes for workers' compensation insurance for veterinary businesses are important because they help ensure veterinary practices pay the correct amount for insurance while still providing the right protection for their employees.
How are class codes determined for veterinary businesses?
Class codes for veterinary businesses are assigned based on injury data specific to each state. The NCCI tracks injury frequencies in veterinary offices, pet grooming, and related services to assign risk ratings.
Veterinary work often involves handling animals, which can lead to bites or scratches. The risk rating for veterinary businesses is usually moderate to high, depending on the state.
If injuries increase in a particular state, the risk rating may rise, leading to higher premiums. Improved safety practices can help lower the risk rating and reduce costs over time. The NCCI updates these rates annually, ensuring premiums are based on the latest injury data from each state.
Class Code for Veterinary Businesses
Class Code 8831
The code typically applied to veterinary businesses is Code 8831. This code applies to veterinary hospitals, animal shelters, pet grooming businesses, and other animal-related services.
It covers a wide range of activities, including medical treatments for animals, grooming, and boarding services. The code reflects the potential risks of handling animals, administering treatments, and the potential for injury while working with pets.
Kickstand Note:
If your business includes pet grooming or dog walking services in clients’ homes, you may fall under Class Code 0917. This reflects the higher risk of working in someone else’s home. However, if you are walking dogs as part of a service from a kennel or animal shelter, the business remains classified under Class Code 8831, as it is related to the kennel’s operations.
State-Specific Class Codes for Veterinary Businesses
Some states use different class codes than the standard ones issued by NCCI. Here are some examples of state-specific codes for veterinary businesses:
Class Code 0959 - Pennsylvania and Delaware
In Pennsylvania and Delaware, veterinary practices and animal shelters fall under Class Code 0959. This includes a wide range of veterinary services, such as hospitals, pet grooming, and mobile care.
How do Veterinarian Class Codes affect insurance rates?
For veterinarians, the average cost for workers' comp insurance is $0.93 per $100 of payroll. Since veterinary practices involve physical tasks like lifting animals and handling potentially aggressive patients, the risk rating is slightly higher than in human healthcare, such as doctor's offices or clinics, where the physical demands are often lower. Rates from selected states are shown in the chart below.
Veterinarians (Class Code 8831) Rates per State – 2025
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These are starting rates, but your actual premium will depend on the specific risks associated with your veterinary practice.
Insurance companies adjust your premiums using an experience modifier (ExMod), which reflects your claims history.
If your ExMod is 0.95, you’ll pay lower premiums compared to other veterinary practices. However, if your ExMod exceeds 1, your premiums will be higher due to a history of claims.
Maintaining a safe workplace and reducing injuries will help keep your ExMod low, which can lower your premiums over time.
Curious how these rates affect your veterinary practice? Check out our Guide to Workers' Compensation Insurance for Veterinarians Cost for more details.
Do I Need Workers' Comp for 1099 Employees
Legally, workers’ comp is not needed for 1099 employees. However, if the employee lacks coverage, you may be held liable in case of injury. Also, if a state or federal authority determines your 1099 workers are not in fact independent contractors, they must be reclassified as employees. That also means you’re required to provide them with workers’ compensation insurance.
Managing Risk with a strong Safety Program
Veterinary businesses face unique risks. A strong safety program is key to keeping workers safe and your premiums low.
Tips for reducing common injuries in Veterinary Businesses:
- Safe Animal Handling: Train staff to handle animals safely, especially when administering treatment or handling potentially aggressive animals. Use proper restraints and tools to minimize risks.
- Use of PPE: Provide gloves, masks, and other protective equipment to prevent exposure to animal waste or injury from bites and scratches.
- Lifting Techniques: Proper lifting practices are important, as veterinarians and staff often need to lift animals or medical equipment. Use ergonomic tools and lifting aids to prevent back and neck injuries.
Find the right Workers’ Comp for your Business
Looking for the right workers' comp coverage for your veterinary business? Start an instant quote now or call 886-338-8823 to speak with an expert. We specialize in providing workers’ comp for veterinary businesses and can make sure you get the coverage that fits your needs.
Note: The information provided in this blog is intended for general informational purposes only and is not a substitute for professional legal or insurance advice. Laws and regulations regarding workers' compensation insurance are complex and vary by state and by specific circumstances. Therefore, readers are encouraged to consult with a qualified legal or insurance professional to obtain advice with respect to any particular issue or problem they might have.
Mordechai Kamenetsky, co-founder and lead agent of Kickstand, is recognized as an expert in workers' compensation. He is passionate about helping small businesses manage risks and lower their workers' comp costs. In his articles, he educates readers and clients on the intricacies of workers' comp insurance.
Legally, workers’ comp is not needed for 1099 employees. However, if the employee lacks coverage, you may be held liable in case of injury. Also, if a state or federal authority determines your 1099 workers are not in fact independent contractors, they must be reclassified as employees. That also means you’re required to provide them with workers’ compensation insurance.
