Tag Archives: liability

Liability Claims From Dog Bites Are Increasingly Costly For Insurers

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Liability claims related to dog bites are getting more expensive, according to an analysis of claims data released Wednesday by the Insurance Information Institute and State Farm.

The number of dog-bite claims fell by 1.4 percent last year to 16,459 from 16,695 the year before, but the costs of settling dog-bite claims continued to rise, by 1.2 percent last year.

Dog bites account for one third of all dollars paid by insurers for homeowner liability claims. The average cost of a dog-bite claim was $29,752 last year compared with $29,396 the year before. Rising claim costs almost completely offset a decrease in the number of claims as total claims costs related to dog bites were down 0.2 percent last year over 2011.

The Insurance Information Institute said rising claims costs suggest higher medical costs for the person injured by the dog, and larger settlements, judgments and jury awards to plaintiffs.

In Connecticut, State Farm saw an increase in the number of claims, average price of claims and total cost of claims related to dog bites from 2008 to 2011. The numbers rose from 14 claims totaling $316,998 to 31 claims totaling $1.49 million between 2008 and 2011.

Last year, State Farm paid $628,860 on 17 claims in Connecticut. While State Farm saw a decrease in the total price of claims, number of claims and average price of claims last year compared with 2011, that  is not the case nationally.

State Farm was the fifth largest insurer of homes in Connecticut in 2011 after Liberty Mutual, The Travelers Cos., Chubb Corp. and Allstate Corp., according to data available from the Connecticut Insurance Department.

Nationally, the average dog-bite claims have increased 55.3 percent in 10 years, from $19,162 to $29,752 between 2003 and 2012, according to the institute and State Farm, the largest home insurer in the U.S.

Insurers costs related to dog-bite claims increased 51.4 percent in 10 years, from $324.2 million to $489.7 million between 2003 and 2012, according to the institute and State Farm.

The number of dog bites claims was 16,919 in 2003. The number of claims decreased for two years to a 10-year low of 14,295 in 2005, and claims generally increased, though not every year, through 2011.

The Insurance Information Institute recommends the following:

To reduce the chances of your dog biting someone, consider taking the following steps:

?       Consult with a professional (e.g., veterinarian, animal behaviorist, or responsible breeder) to learn about suitable breeds of dogs for your household and neighborhood.

?          Spend time with a dog before buying or adopting it. Use caution when bringing a dog into a home with an infant or toddler. A dog with a history of aggression is inappropriate in a household with children.

?          Be sensitive to cues that a child is fearful of or apprehensive about a dog and, if so, delay acquiring a dog. Never leave infants or young children alone with any dog.

?          Socialize your dog so it knows how to act with other people and animals.

?          Discourage children from disturbing a dog that is eating or sleeping.

?          Play non-aggressive games with your dog, such as “go fetch.” Playing aggressive games like “tug-of-war” can encourage inappropriate behavior.

?          Avoid exposing your dog to new situations in which you are unsure of its response.

?          Never approach a strange dog and always avoid eye contact with a dog that appears threatening.

?          Immediately seek professional advice from veterinarians, animal behaviorists, or responsible breeders if your dog develops aggressive or undesirable behaviors.

Travelers Asbestos Case Remains An Issue In U.S. Senate Race Between Scott Brown, Elizabeth Warren

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One of Connecticut’s largest private employers continues to be a lightning rod in a high-profile U.S. Senate race that many in the nation are watching — the one in Massachusetts.

Television advertisements for both candidates, incumbent Republican Scott Brown and Democrat contender Elizabeth Warren, have focused on Warren’s work a few years ago for The Travelers Cos., which employs about 7,000 in Connecticut.

Brown has attacked Warren for months, saying she was paid by Travelers to limit how much the insurance company paid to victims of asbestos-related health problems such as mesothelioma.

The most recent development in the campaign were two new television advertisements by Warren’s campaign saying that Brown should be ashamed for distorting the truth, and that Warren was working to help victims get money after a decades-long legal battle.

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Global Warming Brings Big Legal Expenses, Liability Questions For Insurers

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Arctic ice formed a natural sea wall that protected the barrier-reef of Kivalina, home to about 400 Inupiat Eskimos — until it thinned in recent years, and waves gulped at the shore, eroding the spit of land off Alaska’s northwestern shore and compelling residents to look elsewhere to live.

The Inupiat blame global warming and, more pointedly, in a federal lawsuit, energy companies that burn fossil fuel that they say contributed greenhouse gases warming the Earth.

The suit so far has been unsuccessful. Where it has succeeded, however, is in giving insurance lawyers a case study of an issue emerging as a major concern to property-casualty insurance companies and reinsurers, such as those in Hartford and Fairfield counties. Energy companies, air polluters and all manner of potentially responsible parties could be sued, and if they are, their liability insurer has an obligation to defend them.

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