Insurance News and Information

Uninsured dog owners could pay out the muzzle for dog bite liability claims.

ALEXANDRIA, Va. -- Owning dogs costs an average of $14,000 over the animal's lifespan, but that amount could be dramatically higher for pet owners whose dogs bite and who are without the proper insurance, warns the Independent Insurance Agents of America (IIAA).

"Homeowners and renters who own dogs should never go without liability insurance -- which is part of most standard homeowners or renters policies -- or they may be in for a rude awakening if sued," said Madelyn Flannagan, IIAA's consumer affairs advocate.

Who is at the most risk? Many home-based business owners and renters are at particular financial risk when their dogs bite. "Because homeowners policies exclude coverage for business-related losses, an in-home entrepreneur without business insurance may not be covered if sued by a customer who was bitten by the entreprenuer's family dog," Flannagan cautioned. Renters are also subject to higher risk because many people who rent are still uninsured for personal property losses and liability claims. Some mistakenly believe that their landlord's insurance will cover their losses.

Instances of dog-related injuries or attacks are by no means rare. The insurance industry estimates that one-third of all homeowners insurance liability claims may be related to dog attacks. And, in light of the fact that insurance companies paid out $1 billion in dog-related claims in 1995, that suprising statistic doesn't seem to be far off the mark.

Alarmingly, the numbers are also increasing. The National Center for Injury prevention and Control reports that the number of dog bites that caused people to seek medical care increased from 585,000 in 1986 to 800,000 in 1994, a 37% increase during a period in which the dog population rose less than 2%. The Humane Society of the United States pegs the number of reported dog bites as high as 3 million a year.

"Unfortunately more dogs are attacking -- due partially to the fact that more crime-cautious consumers are using more aggressive dogs for personal protection -- and more unwitting victims are suing," noted Flannagan. Owners whose pets are among the more agressive breeds like Pit Bulls and Rottweilers or those dogs that have demonstrated aggressive tendencies may want to purchase an umbrella liability policy which provides increased coverage in case of attack. but others should be cautious as well, the IIAA says. All dog owners should be cautious around children. Although most dogs are well-behaved, every dog has the capacity to bite, and children are most often the victims.

"Dog owners need to be aware of the financial as well as physical implications of letting dogs roam free and of not taking precautions to prevent injuries, even at home," says Flannagan. While many dog owners take precautions when walking their animals in the park for instance, dogs don't always bite in public places. It is estimated that 70% of attacks occur on the owner's property.

Leash and muzzle laws vary from state to state as does owner liability, so consumers should also be aware of the presence of such statutes and the potential legal and financial repercussions of disregarding them. In many cases, a dog doesn't actually have to bite someone for the owner to be liable for a victim's injury. On the other hand, the owner may not be liable for injuries caused by an animal if the injured party was negligent, if the animal has no history of aggression, or if the owner posts approved warning signs.

Most importantly, take precautions to protect others, but don't forget to protect yourself as well, the IIAA reminds consumers.