A Scary Tail: Dog Bite Insurance Claims on the Rise

Insurance claims related to dog bites skyrocketed in 2009. According to the Insurance Information Institute (I.I.I.), dog bites accounted for more than one-third of all homeowners liability claims paid in 2009. Dog bite claims cost $412 million, a 6.4 percent increase over 2008. In addtion, the number of claims jumped by 4.8 percent to 16,586 in 2009, from 15,823 in 2008.
 
The severity of dog bite claims has also increased considerably. The average cost per dog bite claim in '09 was $24,840, up slightly from $24,461 in 2008. But since 2003, the cost of these claims has exploded by nearly 30 percent.

More than 4.7 million U.S. residents are bitten by dogs each year. Of those injured, 386,000 require emergency room treatment; and about 16 people die each year from dog bites. Children are the most prone to dog bite injuries, especially children ages five to nine. Dog bite injuries are far more prevelent among boys than girls. And, With more than 50 percent of bites take place on the dog owner’s property.

There are three kinds of dog bite-related laws that impact property owners:

1. Dog-bite statute: The dog owner is automatically liable for any injury or property damage the dog causes, even without provocation.
2. “One-bite” rule: In some states, the owner is not held liable for the first bite the dog inflicts. Once an animal has demonstrated vicious behavior, such as biting or otherwise displaying a ‘vicious propensity’, the owner can be held liable.
3. Negligence laws: The dog owner is liable if the injury occurred because he or she was unreasonably careless (negligent) in controlling the dog.

In most states, dog owners are not liable for injuries incurred by trespassers. However, when a dog owner is found to be legally responsible for an injury to a person or damaged property due to a dog bite, the dog owner may be responsible for medical bills, lost wages, pain and suffering and property damage.
 
Some homeowners and renters insurance policies will provide coverage for cover dog bite risks. Most standard homeowners policies provide between $100,000 to $300,000 in liability coverage. If the claim exceeds the limits, the dog owner is personally responsible for damages above that amount, including legal expenses. A liability policy also provides no-fault medical coverage in the event a dog bites a friend or neighbor. This enables them to submit their medical bills directly to the homeowner’s insurance company. Homeowners can generally get $1,000 to $5,000 worth of this coverage.
 
Although most insurance companies will insure homeowners with dogs, once a dog has bitten someone and a claim has been filed against your policy, your insurer will likely increase your premium or exclude the dog from coverage. Some companies require dog owners to sign a liability waiver, excluding dog bite claims. Some carriers will provide coverage if the owner takes the dog to behavior classes. Some insurers will only provide coverage for certain breeds of dogs, and will exclude "high risk" breeds such as pit bulls and Rottweilers.
  
Following are some of the steps recommended by the Center for Disease Control that may help to reduce the chances of a dog biting incident:

* Consult with an animal professional such as a veterinarian, trainer or breeder to learn about the expected behavior of various breeds.
* Spend time with a dog before adopting it. Find out if the dog has any history of aggression toward children or other dogs.
* Do not force a pet onto your child. If they are hesitant or act nervous around a dog then you may want to wait before adopting a dog.
* Never leave young children alone with your pets.
* Have your dog spayed or neutered. Dogs are three times more likely to bite if they have not been neutered.
* Socialize your dog so it becomes comfortable around other people and animals.
* Pay attention to how your children play with your dog. Do not allow any sort of teasing or abuse of your pet.
* Avoid aggressive games such as “tug-of-war” that may encourage unwanted behavior from your pet.
* Seek professional advice from veterinarians or animal trainers if your dog exhibits negative habits or behavior.