The first pet insurance policy in the U.S.A. was issued in 1982 to the famous TV dog "Lassie" but the Swedes have been insuring their pets since 1924. In The Bahamas, there has never been a specific pet insurance policy on the market, but there are two local insurance companies who will extend their homeowners policies to cover some aspects of pet ownership. In the U.K., a standalone pet insurance package policy will include cover for veterinary fees, death benefit claims as well as loss of the pet by theft or straying. Some packages will include the cost of advertising and rewards up to a certain limit if it leads to the return of the pet. Policies may even go as far as paying emergency boarding and dog walker fees if the owner is unable to care for the pet due to emergency hospitalization; they may cover holiday cancellation expenses if the owner is unable to travel due to the pet needing emergency care or surgery. Most interestingly, standalone pet insurance package policies almost always include public liability. This covers property damage or personal injury arising from an incident involving the pet, where the policyholder is legally responsible for it (that is, negligence). The liability aspect of the policy will pay the claimant's costs and expenses as well as the policyholder's defense costs up to the policy limit.The pet insurance business is a niche market with little data for pricing; just like health insurance, high administration costs can make it unprofitable. Also, insurers have found that insured pet owners tend to visit veterinary clinics more often and vets have been known to do more expensive procedures. There have even been reports of fraud where claims were made for multiple animals of the same sex and breed under one insured policy. Despite these difficulties, the U.S.A., U.K. and Sweden have successful markets where the popularity of pet insurance has been linked to the general increase in pet ownership and the booming business which surrounds pet products and services.In The Bahamas, traditionally there was no cover offered at all for domestic animals in homeowners' insurance. Even for insured perils, such as damage to the building due to impact by a vehicle or animal, damage caused by a domestic pet is not covered. Likewise, a policy will cover damage to home contents, but compensation for loss of a pet is also specifically excluded from the policy coverage.Whereas damage caused to your home building or contents by your pet is still excluded, some local insurers will extend the homeowners' coverage to pay for medical expenses up to a certain limit for accidental injury as a result of an insured peril, such as a fire. They will also pay up to the "market value" of the domestic animal in the case of loss or death due to an insured peril, but loss of the animal due to theft is excluded. There is one company which will pay veterinary fees for domestic pets up to the limit specified in the policy.As for liability aspects of pet ownership, normally the liability part of your homeowners' insurance protects you against sums of money (damages) that you become legally liable to pay from accidents and occurrences on your property. Such accidents include property damage and injuries, including dog bites to guests. Read your policy carefully and call your broker to find out what's covered.o Stephanie Cleare is a fully licensed and qualified account executive at Tavares & Higgs Insurance with 12 years experience in the Bahamian insurance industry. Email her at scleare@tavareshiggs.com.

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