Strachan-Casale Insurance Blog

The frequency of dog bite claims continues to rise, now accounting for one-third of all homeowner’s insurance liability claims. These claims climbed nearly 9 percent in 2008, costing homeowners insurers $387 million in 2008, according to the Insurance Information Institute.

The Centers for Disease Control and Prevention reports that about 4.5 million people are bitten by dogs each year in the United States, and about 18 percent of these require medical care. In 2006, over 31,000 people underwent reconstructive surgery for dog bites. These incidents often lead to lawsuits, with damages awarded for medical bills, lost wages, emotional distress, and disfigurement.

American dog bite law consists of civil and criminal law, found in state statutes and court decisions. The key issue is whether the jurisdiction follows the Old English "one bite rule." With this law, the owner is not held liable for the first bite the dog inflicts. Ohio and two thirds of the other states hold the dog owner liable for all dog bites, sometimes with a few exceptions (e.g., trespassers). More states are now moving away from the "one bite rule." See dog bite laws for information about your state's laws.

Since there is rarely exclusion or other limitation in homeowner’s policies specifically targeted to ownership of dogs, liability arising from dog bites is covered unless some other exclusion or provision is applicable. And, with over 30 percent of all liability claims being from this cause, one would expect to see a significant number of coverage disputes involving other coverage limitations where a dog bite was the underlying cause of liability.

Indeed, a legal search of "homeowners insurance" and "dog bites" proves this true by revealing over 100 coverage-related cases. These usually involve the denial of the claim due to various exclusions in the homeowner’s policy. One of the more common homeowner’s insurance coverage gaps for these losses pertains to business use of the property. In one case, the insured homeowner rented a barn to be used as a stable, and her dog bit a business guest, resulting in serious facial injuries. In another case, the insured operated a bed and breakfast (B&B) and her dog bit a B&B guest at the home. There was no type of business-related coverage endorsement in either of the applicable homeowner’s policies. In both cases, the courts upheld the business use exclusion, denying liability coverage.

Insurers often contest dog bite liability claims which occur at a rented or occupied premise that is not an "insured location" since it is not declared. In one case, a grown son of the named insured lived at the insured's rental home that was not listed under the parents' homeowners’ policy. The son's dog bit a guest, with the son's parents named in the ensuing lawsuit. The court ruled against liability coverage under the parents' homeowners’ policy since the rental house was not an insured location.

The sheer number and magnitude of dog bite claims exposes the need to ask us at Strachan-Casale, Inc. about any dog or pet exposures and what steps you can take to control your risk.

We will help you navigate your insurance policy limitations and make sure you are properly insured.