Americans love their pets, as evidenced by the millions of dogs and cats found in American households. Unfortunately, there are many negative encounters with dogs, and roughly 800,000 people seek medical attention for dog bites annually. The Insurance Information Institute (III) reports that in 2021 insurers paid out $881 million for dog bites and other dog-related injuries and that the average cost for dog bite claims was $49,025.
For a time insurers would have lists of dog breeds that they would not provide coverage for; homeowners with those dogs were ineligible for coverage. States also had breed restrictions, but those restrictions have changed over time and now refer to the temperament of the animal more than the breed. Information can be found in the following charts: Dog Bite Statutes Part I – Liability Laws; Dog Bite Statutes Part II—Definition of "Dangerous"; Dog Bite Statutes Part III—Leash Laws.
In light of these issues, ISO has developed a standard form allowing an insured and insurer to agree to exclude liability coverage regarding a specific dog that lives in the household. The form is the Canine Liability Exclusion HO 24 77. The name and description of the dog are listed in a schedule on the form.
SECTION II – EXCLUSIONS
E. Coverage E – Personal Liability And Coverage F – Medical Payments To Others The following exclusion is added: Coverages E and F do not apply to the following: Canines "Bodily injury" or "property damage" arising out of direct physical contact with a canine described in the Schedule that is owned by or in the care, custody or control of an "insured".
All other provisions of the Policy apply.
Analysis
The form is straightforward and excludes liability and medical payments for "bodily injury" or "property damage" arising out of direct physical contact with a dog listed in the schedule on the form. The dog must also be owned by, or in the care, custody or control of an insured. Because the dog must be listed on the schedule if the insured is dog sitting and while walking the dog in his care the dog bites someone, the exclusion would not apply unless that particular dog had been excluded from the policy. It is unlikely that the insured would schedule a neighbor's dog that he sat occasionally.
Once the endorsement has been added to the policy, the endorsement stays in force for the policy term and each renewal, reinstatement, substitution, modification, replacement or amendment to the policy until the insurer has removed the endorsement. Note that the removal of the endorsement is by the insurer, not the insured. The named insured must acknowledge the exclusion in writing; an insurer cannot simply add the exclusion after a claim for a particular dog without the insured's knowledge and permission. The form is approved in the following states: AK, AR, AZ, CO, DC, DE, GU, IA, ID, IL, IN, KS, KY, ME, MI, MN, MO, MS, ND, NE, NH, NM, NV, NY, OH, OK, OR, PA, SC, SD, TN, UT, WI, WV, WY.
Includes copyrighted material of Insurance Services Office, Inc., with its permission.
Christine G. Barlow, CPCU
Christine G. Barlow, CPCU, is Executive Editor of FC&S Expert Coverage Interpretation, a division of National Underwriter Company and ALM. Christine has over thirty years’ experience in the insurance industry, beginning as a claims adjuster then working as an underwriter and underwriting supervisor handling personal lines. Christine regularly presents and moderates webinars on a variety of topics and is an experienced presenter.