Study Shows Dog Bite Claims Up, Totaling More Than $350 Million in 2007
07.11.2008
Dog bites now account for a third of all homeowners insurance liability claims, costing $356.2 million in 2007 – or 10 percent more than the year before, according to the Insurance Information Institute (III).
The average cost of dog bite claims increased by 11.5 percent last year to $24,511, according to an III analysis. Since 2003, the cost of these claims has risen nearly 28 percent. However, the actual number of claims paid by insurers has remained relatively stable over the past three years at about 14,500.
More than 4.7 million people are bitten by dogs annually, resulting in an estimated 800,000 injuries that require medical attention, according to the Centers for Disease Control and Prevention. With more than 50 percent of bites occurring on the dog owner's property, the issue is a major source of concern for insurers.
"While the number of dog bite claims has remained about the same in the last three years, the average cost per claim continues to rise because of increased medical costs as well as the size of settlements, judgments and jury awards which have risen well above inflation in recent years," said Loretta Worters, III vice president.
Dog Owner Liability
According to III, dog owners are liable for any injuries their pets cause if:
The owner knew the dog had a tendency to cause that kind of injury.
A state statute makes the owner liable, whether or not the owner knew the dog had a tendency to cause that kind of injury. The injury was caused by unreasonable carelessness on the part of the owner.
There are three kinds of law that impose liability on 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 the dog owner was unreasonably careless (negligent) in controlling the dog.
In most states, dog owners are not liable to trespassers who are injured by a dog. A dog owner who is legally responsible for an injury to a person or property may be responsible for reimbursing the injured person for medical bills, lost wages, pain and suffering and property damage.
Coverage for Dog Owners
Homeowners and renters insurance policies typically cover dog bite liability. Most policies provide $100,000 to $300,000 in liability coverage, according to III. If the claim exceeds the limit, the dog owner is personally responsible for all damages above that amount, including legal expenses. Most insurance companies will insure homeowners with dogs. However, once a dog has bitten someone, it poses an increased risk, and insurance companies may charge a higher premium or exclude the dog from coverage. Some insurers require dog owners to sign liability waivers for dog bites. Some will cover a pet if the owner takes the dog to classes aimed at modifying behavior.
Because a single lawsuit can end up costing hundreds of thousands of dollars and exceed the level of personal liability coverage available through a standard homeowners policy, III advises homeowners to consider purchasing a personal excess liability policy, otherwise known as an umbrella liability policy.
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© 2008 Factiva, Inc. All rights reserved.
FYI:
The average cost of dog bite claims increased by 11.5 percent last year to $24,511.
State Farm’s Numbers:
State Farm® paid $84.6 million in dog bite claims last year, which is up compared to the previous four years, when payments ranged from $74 to $78 million. However, the number of paid claims in 2007 – about 3,500 – is about the same as in 2006 and down slightly from previous years. For example, the number of dog bite claims in 2003 was 4,000.
State Farm’s Policy:
State Farm does not refuse insurance based on the breed of dog. We believe there are good dogs and bad dogs within every breed, just as there can be responsible and irresponsible owners of each breed. Under the right circumstances, any dog might bite. However, the state of Ohio determined last year that pit bulls meet the definition of a ‘vicious dog.’ The owners of pit bulls or any American Staffordshire Terrier mix in that state are subject to specific requirements to protect the public from injury. State Farm believes it is in the best interest of its policyholders not to provide coverage under its homeowners policy in Ohio for this breed of dog.
Dog Bite Prevention Tips:
Consult with a professional (veterinarian, animal behaviorist or responsible breeder) to learn about suitable breeds of dogs for your household and neighborhood.
Spend time with a dog before buying or adopting it. Use caution when bringing a dog into a home of with an infant or toddler. Dogs with histories of aggression are inappropriate in households with children.
Be sensitive to cues that a child is fearful or apprehensive about a dog and, if so, delay acquiring a dog. Never leave infants or young children alone with any dog.
Have your dog spayed or neutered. Studies show that dogs are three times more likely to bite if they are not neutered.
Socialize your dog so that it knows how to act with other people and animals.
Discourage children from disturbing a dog that is eating or sleeping.
Play non-aggressive games with your dog, such as "go fetch." Playing aggressive games like "tug-of-war" can encourage inappropriate behavior.
Avoid exposing your dog to new situations in which you are unsure of its response.
Never approach a strange dog and always avoid eye contact with a dog that appears threatening.
Immediately seek professional advice if the dog develops aggressive or undesirable behaviors.
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