According to the Centers for Disease Control and Prevention, more than 4.7 million people are bitten by dogs annually, resulting in an estimated 800,000 injuries that require medical attention. With over 50 percent of the bites occurring on the dog owner’s property, the issue is a major source of concern for insurers.

Over the years, many states have passed laws with stiff penalties for owners of dogs that cause serious injuries or deaths. In about one-third of states, owners are "strictly liable" for their dogs' behavior, while in the rest of the country they are liable only if they knew or should have known their dogs had a propensity to bite (known as the "one free bite" principle).

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• State Legislation and Court Decisions: In September 2004 the Ohio Supreme Court upheld a lower court decision, ruling that a law requiring the owners of certain dogs to confine their pets and purchase liability insurance is unconstitutional. The Ohio law required owners of vicious dogs to carry at least $100,000 worth of liability coverage. The basis of the majority decision was the failure of the statute to give dog owners the right to contest the classification of their pets as “vicious” or “dangerous” by dog wardens.

• In April 2004 Colorado passed a law that makes dog owners liable for any dog bite injury. Victims of dog bites are now entitled to damages "regardless of the viciousness or dangerous propensities of the dog or the dog owner's knowledge of" those propensities. The new law also bars municipalities and counties from outlawing specific breeds of dogs. Several other states, including California, Florida, Illinois, Maine, Minnesota, New Jersey, New York, Oklahoma, Pennsylvania, Rhode Island, Texas and Virginia prohibit restrictions that target individual breeds.

BACKGROUND

Landmark Case: On January 26, 2001, two Presa Canario dogs attacked and killed Diane Whipple in the doorway of her San Francisco, California, apartment. The owner of the dogs, Marjorie Knoller, a San Francisco lawyer, was convicted of involuntary manslaughter and keeping a mischievous dog that killed a person — she was sentenced to four years in prison for involuntary manslaughter and was ordered to pay $6,800 in restitution. Her husband, Robert Noel, was convicted of two lesser charges but also received a four year prison sentence. Knoller became the first Californian convicted of murder for a dog’s actions. This was only the third time such charges have been upheld in the United States, the first coming in Kansas in 1997.

Insurers are Limiting their Exposure: Homeowners and renters insurance policies typically cover dog bite liability. Most policies provide $100,000 to $300,000 in liability coverage. If the claim exceeds the limit, the dog owner is responsible for all damages above that amount, including legal expenses. Most insurance companies insure homeowners with dogs. However, once a dog has bitten someone, it poses an increased risk. In that instance, the insurance company may suggest that the homeowner find the dog a new home, or may charge a higher premium, nonrenew the homeowner’s insurance policy, or exclude the dog from coverage.

Many insurers are taking steps to limit their exposure to such losses. Some companies require dog owners to sign liability waivers for dog bites, while others charge more for owners of biting breeds such as pit bulls and Rottweilers and others are not offering insurance to dog owners at all. Some will cover a pet if the owner takes the dog to classes aimed at modifying its behavior or if the dog is restrained with a muzzle, chain or cage. It is unlikely that insurers will begin offering specialty insurance policies just for dog bites since the cost of such policies would be prohibitive.

State Farm, the nation's largest homeowners insurer, says it welcomes all dogs, except those with a history of biting. American Family Insurance has a list of five breeds it won't insure, saying they cause more liability claims than others. Farmers Insurance Group has dog-by-dog restrictions and has a no-tolerance policy for bites. Prospective Farmers policyholders are asked to report whether they have a “vicious animal” on the premises, which leaves some discretion to the homeowner. But once there is a claim, the pet is specifically excluded from coverage. The company also won’t take new business from people who have had dog-bite claims in the last three years, even if the family no longer owns the pet. Mercury Casualty Company offers a 10 percent discount on homeowners insurance for families that don’t own a dog or are willing to take their dog off their policy.

Dog Owners’ Liability: Dog owners are liable for injuries their pets cause if the owner knew the dog had a tendency to cause that kind of injury; if a state statute makes the owner liable, whether or not the owner knew the dog had a tendency to cause that kind of injury; or if the injury was caused by unreasonably carelessness on the part of the owner.

There are three kinds of law that impose liability on owners:

• A dog-bite statute: where the dog owner is automatically liable for any injury or property damage the dog causes without provocation.
• The one-bite rule: where the dog owner is responsible for an injury caused by a dog if the owner knew the dog was likely to cause that type of injury – in this case, the victim must prove the owner knew the dog was dangerous.
• Negligence laws: where the dog owner is liable if the injury occurred because the dog owner was unreasonably careless (negligent) in controlling the dog.