US pet insurance premiums climbed to a record $5.47 billion in 2025, according to the Insurance Information Institute (Triple-I), as the trade group warned that fast-growing household spending on animals is also widening the liability and underwriting risks facing owners, carriers and pet-care businesses.
The figures come from Triple-I's latest Issues Brief, "Pet Insurance: State of the Risk," which maps how financial and liability exposures are evolving alongside a deepening bond between Americans and their pets.
The American Pet Products Association reported pet ownership reached 95 million US households in 2025, with Americans projected to spend $165 billion on pet care in 2026.
Triple-I said pets are increasingly viewed as family members, a shift that is feeding demand for tailored insurance products.
"Pets are deeply integrated into American households, but with that companionship comes financial responsibility and risk," said Triple-I chief executive officer Sean Kevelighan.
He added that the brief is intended to help consumers understand cover for veterinary bills, liability exposures and business risks tied to pet care.
The US pet insurance market has expanded by more than 10% annually since at least 2018, according to Triple-I, with most major carriers posting double-digit premium growth in the past year. Even so, fewer than 4% of US pets are insured, based on data from the North American Pet Health Insurance Association, leaving significant headroom for the industry.
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JAB Holdings posted a 79.9% year-on-year jump in US direct premiums in 2025, while AXA, Munich Re and AXIS Capital write business through reinsurance and managing general agency arrangements that sit outside published league tables.
Pet policies typically respond to accidents and illnesses, and in some cases hereditary or congenital conditions. Optional wellness plans may also cover preventive care such as vaccinations and annual examinations.
Liability exposures extend well beyond the veterinary clinic. Triple-I said insurers paid $1.86 billion for dog-related injury claims in 2025, with the average claim cost reaching $65,450.
Homeowners and renters policies generally include personal liability cover for pet-related incidents, subject to policy terms and limits. The trade group cautioned, however, that pet sitters, dog walkers and in-home pet-care providers may face material gaps if they rely solely on those forms or on standard general liability cover.
Standard policies often exclude business activities conducted in the home, as well as damage involving animals under a business's care, custody or control. Specialized pet business liability cover, endorsements or inland marine policies may be needed depending on the services offered.
"Whether you own a pet, transport pets or operate a pet care business, understanding where your insurance coverage begins and ends is critical," Kevelighan said.
