While dogs make great companions, playmates, and protectors, they also continue to be a problem for insurers. Nearly two million people are bitten by dogs each year with around 800,000 people requiring professional medical treatment for their wounds. Each of these incidents is a potential lawsuit.

The "Policy" On Dogs

• If you have homeowners insurance and you own a pet, the liability portion of your policy provides protection for losses arising from pet ownership.
• Not only are you and your household protected, but coverage even extends to persons who have custody of your pet.
• Your policy won't cover businesses that may have custody of your pet, such as kennels, obedience schools, groomers and professional sitters or walking services (they should carry their own coverage).
• Coverage could become problematic if dogs in a home are related with unreported, in-home business activity. Losses involving persons who are bitten while in a home for business reasons may not be covered.

Minimizing The Problem

Owners have a responsibility to raise and handle their dogs in a manner that reduces the chance for a loss. Steps to take include:

• Becoming knowledgeable about their breed of dog and about general principles of ownership and care.
• Make certain that family members, social visitors, neighbors and strangers are protected from the owner's pets.
• Owners should take advantage of resources to help them, such as tips from animal shelters, dog ownership clubs, the AKC and a plethora of Internet sources.

Blacklisted

It may not be the fairest set of circumstances, but more insurers are choosing not to give dogs the benefit of the doubt. It is becoming more common for companies to refuse to write coverage for people who own certain breeds of dogs. Below are the breeds the Center for Disease Control listed as the most dangerous based on fatal human attacks caused:

1. Pitbulls
2. Rottweiler
3. German Shepherd
4. Husky-Type
5. Malamute
6. Doberman Pinscher
7. Chow Chow

Also see: Lawsuits Can Take a Bite Out of Your Wallet; Be a Responsible Dog Owner

Information from the Rough Notes Company and Property Casualty 360.