Dog Bite Liability

Did you know that dog bites and other dog-related injuries accounted for more than one-third of all homeowners insurance liability claim dollars paid out last year, costing more than $530 million?

Also, according to the Centers for Disease Control and Prevention, about 4.5 million people are bitten by dogs each year, and about 885,000 require medical attention for these injuries; about half of these are children.

With 68 percent of U.S. households, or 83.3 million homes, owning a pet, we thought it would be a good idea to share some insight into how insurance companies view pets (specifically dogs) and what can be done to ensure you have proper liability insurance coverage.

If you have any specific questions about your homeowners’ insurance policy and pets, please feel free to give our office a call.

Claims: According to the Insurance Information Institute, the average cost paid out for dog bite claims nationwide was $32,072 last year. The average cost per claim nationally has risen more than 67 percent from 2003 due to increased medical costs and the size of settlements, judgments, and jury awards given to plaintiffs, which are still on the upswing.

The trend in higher costs per claim is attributable to dog bites and dogs knocking down children, cyclists, the elderly, etc., which can result in injuries that impact the potential severity of the losses.

State and Local Legislation: Dog owners are liable for injuries their pets cause if the owner knew the dog tended to bite. In some states, statutes make the owners liable whether or not they knew the dog tended to bite; in others, owners can be held responsible only if they knew or should have known their dogs had a propensity to bite. Some states and municipalities have “breed specific” statutes that identify breeds such as pit bulls as dangerous; in others, individual dogs can be designated as vicious.

Dog Owners’ Liability: There are three kinds of law that impose liability on owners:

A dog-bite statute: where the dog owner is automatically liable for any injury or property damage the dog causes without provocation.
The one-bite rule: where the dog owner is responsible for an injury caused by a dog if the owner knew the dog was likely to cause that type of injury—in this case, the victim must prove the owner knew the dog was dangerous.
Negligence laws: the dog owner is liable if the injury occurred because the dog owner was unreasonably careless (negligent) in controlling the dog.

Insurers are Limiting their Exposure: Homeowners’ and renters’ insurance policies typically cover dog bite liability legal expenses, up to the liability limits (typically $100,000 to $300,000). If the claim exceeds the limit, the dog owner is responsible for all damages above that amount. Some insurers do not ask the breed of a dog owned when writing or renewing homeowners insurance and do not track the breed of dogs involved in dog bite incidents. However, once a dog has bitten someone, it poses an increased risk. In that instance, the insurance company may charge a higher premium, nonrenew the homeowner’s insurance policy, or exclude the dog from coverage.

Some insurers are taking steps to limit their exposure to such losses. Some companies require dog owners to sign liability waivers for dog bites, while others charge more for owners of breeds such as pit bulls and Rottweilers, and others are not offering insurance to dog owners at all. Some will cover a pet if the owner takes the dog to classes to modify its behavior or if the dog is restrained with a muzzle, chain, or cage.