business
Dealing with Dog Bite Liability David Pearsall of PPG corporate sponsor Business Insurers of the Carolinas explains how insurance covers pet professionals, their staff, or third parties who get bitten on the job
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og bite liability and workers’ compensation claims continue to be the largest losses we, at Business Insurers of the Carolinas, see from the pet services industry each year. Regardless whether you are a pet trainer, pet sitter/dog walker, operate a daycare/boarding facility or a pet grooming business, a dog bite is often your worst nightmare. For this briefing, let’s look at how insurance covers bites to others as well as to you or your staff, with some claims examples you can learn from. As most pet professionals are aware, a general liability policy will protect you against bodily injury or property damage to others caused by your negligence (or your staff’s negligence while working for your business). Typically, a $1,000,000 liability limit is recommended. Please be aware that under most general liability policies, defense cost is outside of this limit, and the insurance company will defend you if a lawsuit is brought against you/your business. There is also a medical payments limit (typically $5,000 - $10,000) which is used to settle most small bite claims where the victim is not seeking a huge settlement, but simply wants their medical bills covered. But be aware this limit does draw down the $1,000,000 each occurrence limit. Let’s take a look at the following example of a recent dog bite claim to further illustrate. A dog trainer was speaking to an existing client when a new client and her dog came in the facility for a private lesson. One of the dogs in the trainer’s care ran up and attacked the new client’s dog. The client attempted to break up the fight and was bitten multiple times on her hand and fingers. Her dog was also bitten and required stitches. The victim suffered $7,500 in medical bills and her dog suffered $1,600 in vet bills. The victim hired an attorney and filed suit with an initial demand of $1,000,000 policy limit. Three and half years later, after much back and forth, depositions and mediation, the claim settled for $104,826. This is typical of many dog bite claims, as often attorneys will seek the policy limits as a starting point, but rarely, if ever, will they recover that much. Often, dog bite claims will last anywhere from 2-5 years before they settle or go to trial. According to the Insurance Information Institute and State Farm Insurance Company, the average dog bite homeowner’s liability claim in the U.S. as of 2017 was $37,051, although this figure has been increasing significantly over the last few years. In addition, per the closed claims files in our office, the average dog bite claim involving a pet professional’s general liability insurance was $59,213 in 2018 (approximately 60% higher than homeowner’s liability claims). Here are a few more examples of dog bite liability claims: • A rescue dog that was being boarded at trainer’s facility bit a third party on the leg while at the facility. Total Paid: $28,385. • Claimant was walking his small dog at apartment complex
Be aware that general liability policies only cover injuries to a third party and do not cover you or your staff (regardless if you call staff independent contractors or employees). The only type of insurance that will cover you and your staff against dog bites sustained on the job is workers’ compensation insurance.
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BARKS from the Guild/July 2019
© Can Stock Photo/suemack
Dog bite liability and workers’ compensation claims are the largest losses seen at Business Insurers of the Carolinas from the pet services industry each year
when a much larger dog in a dog walker’s care broke free and attacked the smaller dog. The dog owner suffered major injuries, and his dog, very sadly, passed away. Total Paid: $252,659 • A 3-year-old girl was bitten in the face while attending a group training class with her mother. Total Paid: $57,540. • Trainer took a dog to a charity event to socialize. Claimant came by to pet the dog and when she attempted to do so was bitten in the face. Total Paid: $377,786. • Neighbor came over to pet sitter’s home, where she was boarding a client’s dog, and asked if she could pet the dog. Sitter agreed and dog bit her on the hand. Total Paid: $20,000.
Lowering the Risk Here are a few tips on how to lower your dog bite liability risk: • Always use a leash when taking dogs into public places where other people and pets are present. • Do not allow people to come and pet or hug a dog in your care, especially children. It is your job to keep others away, no matter how friendly the dog in your care appears to be. • If operating a training facility or boarding/day care facility, limit entry and exit to one family at a time. When you congest an area with multiple families and/or dogs at the same time, it is a recipe for disaster. • Never allow people to get between two dogs that are fighting. • Always be aware of your surroundings when taking dogs in public or holding group classes in public places.
Workers’ Compensation Now let’s turn our attention to when you or your staff is bitten by a dog in your care, custody or control or bitten by another dog while working in a public setting. Unfortunately, we hear more horror stories each year from pet industry professionals who mistakenly believed they were covered by their general liability policy. Be aware that general liability poli-