Direct Line Pet Insurance has launched a new 'Advanced' product to complement its 'Essential' policy.
The new policy covers vets' fees up to £6,000, costs towards advertising and a reward if a pet is lost or stolen, and boarding costs for a pet if the owner is hospitalised.
Such cover is increasingly necessary, especially in light of a recent Mintel report which showed that 50% of owners need to claim on their pet policies each year.
Direct Line spokesman Chris Price said: "Our Essential product has proved to be an excellent success for us over the last five years and has offered a large number of pet owners an affordable alternative to those policies offered by traditional insurers.
"However, we believe it is important to offer customers flexibility and in accordance with feedback from our staff, customers and the veterinary profession we are pleased to be introducing our new Advanced policy."