What is pet insurance??? Simply put, it is a health insurance policy for your pet. The policy will cover a wide variety of unforeseen injuries or illnesses that are explained in the last section of this post. Currently, you are able to purchase a pet insurance policy for either you dog or you cat. If you have both, then you could purchase a policy for each. Being that most injuries or illnesses are unforeseen a pet insurance policy will give you the peace of mind that you will not be financially burdened were something to happen to your pet.