Costs Related to Dog Bite Claims Up 8.7%

Due to increases in medical and court-related expenses, dog bites cost insurers $387.2 million in 2008, up about 8.7% when compared with 2007, said the Insurance Information Institute.

"The rise in dog bite claims over the course of the past five years can be attributed to 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 Institute.

The III found the average cost of a claim in 2008 was $24,461 compared to $24,511 in 2007, but the number of claims has gone up nearly 8.9% over 2007. The cost of dog bite claims rose 28% since 2003.

The Center for Disease Control and Prevention says more than 4.7 million each year are bitten by dogs and about 800,000 seek medical attention for dog bites. More than 31,000 need reconstructive surgery.

In 2006, the III said that the average dog bite claim costs insurers $16,600 and that bites accounted for about 25% of all homeowners liability claims (BestWire, July 13, 2006).

There are different laws in each state to deal with dog bites but dog ownership comes with liabilities. Three laws normally apply, including one which the owner is responsible for any injury caused by a dog, whether it is provoked or not. Some states do not hold an owner liable for the first dog bite and others have laws holding an owner liable if the owner was negligent in controlling the dog.

About 50% of bites occur on the dog owner's property, a "major source of concern for insurers," the Institute said. A lawsuit, even if it is won, can cost hundreds of thousands of dollars. Owners found legally responsible could be required to pay a dog bite victim for medical bills, lost wages, pain and suffering and property damage, III said.