Dog bite claims are becoming a significant financial burden for insurers. According to an analysis of homeowner’s insurance data by the Insurance Information Institute, in 2016 the average dog bite claim settled for $33,230. Except for a hefty increase from 2014 ($32,072) to 2015 ($37,214), and then a decrease in 2016, the average cost per claim has been on a steady incline since 2003. This article discusses good claim handling practices to help minimize your losses.
When a dog bite occurs, it is tough to avoid a claim being made. Many dog owners consider their dog to be a family member, however, a dog is an animal that falls under strict liability laws. Pet owners are responsible for their pets.
Adjusters armed with current knowledge and claim handling best practices will be able to minimize your losses.
Some Dogs Are Considered Higher Risks Than Others
Many dogs brought up in a healthy home will become nice family pets. Knowing the breeds that may not be covered by some insurance carriers will help the adjuster understand what breeds might have more aggressive behavior.
When an adjuster has a claim with a pit bull, their investigative questions should include where the dog was purchased or if rescued, from what organization. Once, I handled a claim for a rescued pit bull that had been bred to fight with other dogs in a ring. His teeth were shaved down and many trainers were working with the dog to change his behavior. Dogs with a history of fighting will have difficulty adjusting to a normal healthy family environment. A dog bite claim involving an animal brought up like this is difficult to defend.
Are you aware that many insurance companies maintain their own list of dog breeds that are deemed uninsurable? If someone applies for homeowner’s insurance or renter’s insurance, and own a dog on this list (even a mix breed), they could be denied coverage. According to Psychology Today, here is a list of 14 dogs that are most often blacklisted:
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Pit bull Terriers
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Staffordshire Terriers
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Rottweilers
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German Shepherds
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Presa Canarios
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Chows Chows
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Doberman Pinschers
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Akitas
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Mastiffs
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Cane Corsos
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Great Danes
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Alaskan Malamutes
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Siberian Huskies
Most dog bite claims will probably involve one of the breeds in the above list, but any breed of dog is capable of biting and causing injury.
4 Steps to Take When Investigating Dog Bite Claims
There are four areas that an experienced claim adjuster should investigate when handling a dog bite claim. Understanding the importance of these areas will make your investigation strong.
#1 State and City Laws
Not all state laws are alike. You need to know in what state the dog bite occurred and understand the laws of that state, county and city.
With dog bite claims on the rise, many cities have enacted breed-specific legislation for dogs that are considered a dangerous breed. Dogsbite.org provides a list of cities that have enacted breed-specific legislation.
State, city or town leash laws are another aspect to consider. Some states simply leave it up to the local government entities to decide what laws to have in place. The Michigan State University College of Law has published a Table of State Dog Leash Laws that summarizes leash requirements by state.
#2 Review the policy
Most homeowners do not think or worry about dog bite claims when purchasing their homeowner’s or renter’s policy. Does the policy provide for or omit coverage for the homeowner's specific breed of dog?
#3 Conduct Interviews
Start by interviewing the owner:
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Where was the dog when the bite occurred; was the dog on a leash or loose?
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What is the dog’s breed and age; where was it purchased; was it a rescue dog?
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Has the dog ever bitten before?
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Was the dog provoked?
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Did the person who was bitten approach the dog on their own?
In addition to the owner, any witnesses should be interviewed.
In some cases, especially those where fraud is suspected, conduct multiple interviews with neighbors or witnesses to gather information on the temperament of the dog.
#4 Review medical records
Medical records are the only way to confirm if there was an actual bite. If it is not a bite, an adjuster will have more control in settling the claim for a nominal amount. For example, if the medical record does not indicate a puncture wound, the claim is not considered a bite. This will give the adjuster some leverage in settling the claim.
Conclusion
Conducting a thorough investigation of a dog bite claim is essential for effective claim handling. If there is an actual puncture wound, it is unlikely that the claim will be denied, but with the proper investigation and claim handling your loss can be minimized.
