Dogs Take a Bite Out of One's Insurance

Man’s best friend is sinking its teeth into homeowners insurance costs. Dog bites now account for one-third of all homeowners insurance liability claims, costing $356.2 million in 2007, up 10.5 percent from the previous year, according to the Insurance Information Institute (I.I.I.).

An analysis of homeowners insurance data by the I.I.I. (www.iii.org) found that the average cost of dog bite claims increased by 11.5 percent in 2007 (the most recent figures available) to $24,511. Since 2003, the cost of these claims has risen nearly 28 percent. However, the actual number of claims paid by insurers has remained relatively stable over the past three years at about 14,500.

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

“While the number of dog bite claims has remained about the same in the last three years, the average cost per claim continues to rise because of increased medical costs as well as the size of settlements, judgments and jury awards which have risen well above inflation in recent years,” said Loretta Worters, vice president of the I.I.I.

Dog Owner Liability

Dog owners are liable for any injuries their pets cause in the following instances: 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 unreasonable carelessness on the part of the owner.

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

• Dog-bite statute: The dog owner is automatically liable for any injury or property damage the dog causes, even without provocation.
  
  
• “One-bite” rule: In some states, the owner is not held liable for the first bite the dog inflicts. Once an animal has demonstrated vicious behavior, such as biting or otherwise displaying a "vicious propensity", the owner can be held liable. Some states have moved away from the one-bite rule and hold owners responsible for any injury, regardless of whether the animal has previously bitten someone.
  
  
• Negligence laws: The dog owner is liable if the injury occurred because the dog owner was unreasonably careless (negligent) in controlling the dog.

In most states, dog owners are not liable to trespassers who are injured by a dog. A dog owner who is legally responsible for an injury to a person or property may be responsible for reimbursing the injured person for medical bills, lost wages, pain and suffering and property damage.

“Although some people purchase dogs for the purpose of guarding their homes, deadbolt locks and home security systems are proven burglary deterrents and that will often earn you a discount on your insurance premium,” said Worters.

Ensurapet Offering Yellow Cross Insurance

Ensurapet Inc., a provider of pet health insurance, noted the completion and launch of its new trademarked product Yellow Cross Insurance.

Yellow Cross Insurance is a major medical pet plan exclusively for EnsurApet veterinary hospital partners. Plans provide lifetime protection, 100% coverage on veterinary services after an annual deductible, and immediate payment at the time of service by the insurance company.

The result is that pet owners will no longer have to pay the entire veterinary bill upfront at the time of service and wait for reimbursement, which commonly can take as long as 60-days. With a Yellow Cross plan, pet owners will merely pay their portion of the veterinary bill and the insurance plan will take care of the rest.

Russell Smith, CEO of Ensurapet stated “Common conditions such as hip dysplasia, which is a big concern among large breed dog owners and among the highest rated reasons for purchasing pet insurance, have long been deemed a congenital condition and excluded by almost every pet insurance policy. Other pet insurance plans have stringent preexisting clauses, for example, one provider’s policy states that benefits terminate at the end of the policy period even if treatments are ongoing into the renewal policy period. These are just a few of the countless product shortcomings that have compromised product loyalty by pet owners and veterinarians.”

“This product gives our veterinary partners a competitive advantage over other hospitals in that they shall be the only source of this truly worthwhile pet healthcare plan for pet owners.”” The benefit to Ensurapet is greater market share penetration and the lowest policy acquisition cost of any pet insurance provider.

Ensurapet has designed and modeled their internet enabled software platform to implement payment at the time of service for policyholders. The integration is seamless and requires little to no change in the current checkout procedures by veterinary hospitals. Plans will only be available through the company’s hospital partners.

Visit: www.ensurapet.com for more information.