Like any other member of your family, your pet is subject to illness or injury, and you're liable for any damage he or she does. Luckily, there are a number of different insurance products that will help protect you and your family from the financial cost of a pet emergency. If you have a dog, cat or other pet, you probably visit the veterinarian on a regular basis—and it can be expensive, especially when an illness or emergency necessitates tests or surgery. Pet health insurance works in a similar manner to human health insurance policies, in that they both include annual premiums, deductibles, co-pays and caps.