Pet insurance is a voluntary benefit employees actually want

I didn't think twice about getting pet insurance for each of my dogs, because it was something my employer offered, so it was a no-brainer.

That simple benefit made me feel supported during a major life change, even though the adoption of my dogs wasn't the kind of family milestone that workplaces have traditionally supported.

Having pet insurance came in handy during the first year, when we faced many first-year dog wellness expenses, multiplied by two.

Offering pet insurance is often one of the easiest ways to enhance an employer's benefits, but many employers overlook this opportunity.

Nationwide's pet insurance team created a white paper about how and why offering pet insurance can engage employees.

Here are five reasons why offering pet insurance as a voluntary benefit is a great option for employers and their benefits advisors to consider.

1. It costs employers nothing and has a high impact.

Pet insurance is a zero-cost benefit for employers because employees pay the premiums themselves. But the impact is significant, because offering the coverage shows that your organization cares about its employees' whole lives, not just their work.

For employees who see their pets as family, this benefit feels personal and meaningful.

2. It's a secret weapon for retaining Gen Z and millennial employees.

Members of younger generations are redefining "family," and pets are often at the center of the new families.

Gen Z and millennial workers are highly engaged when they feel understood. Offering pet insurance makes them feel understood.

Research shows that 72% of Gen Z workers and millennials with pet insurance report being fully engaged at work.

3. Employees can enroll anytime.

Many benefits have a short open enrollment period.

Pet insurance offers year-round flexibility.

Employees can sign up when they adopt a pet, experience a life change, or simply decide it's the right time financially.

This accessibility makes the benefit more relevant and practical, meeting employees where they are, even if their decision to buy the product does not fall within the typical open enrollment window for health coverage for humans.

4. Pet ownership supports employee wellness.

Pets reduce their human companions' stress, fight loneliness, and even help people recovery from illness.

By supporting pet ownership through offering insurance, employers promote better employee mental health and emotional resilience.

5. Offering pet insurance protects employees' financial well-being.

Unexpected veterinary bills can be unpredictable and even financially devastating. Emergency visits for foreign body ingestion, for example, may cost $3,045, according to Nationwide pet insurance claim data.

Pet insurance helps prevent financial strain, keeping employees from dipping into their savings or their 401(k) plans to pay pet medical bills.

With many workers living paycheck to paycheck and having less than $1,000 saved for emergencies, this benefit can help those workers keep savings efforts on track.

Choosing the right provider

Pet insurance needs are not one-size-fits-all.

Some employees value comprehensive coverage, while others just want protection to avoid catastrophic expenses.

Others are more focused on how the cost will impact their paycheck.

Look for plans that let employees tailor coverage to fit their budgets.

Find a provider that lets employees adjust deductibles and coverage limits, and even choose accident-only plans.

Flexibility makes the benefit accessible across generations and income levels.

David Hurley is director of pet voluntary benefits at Nationwide.