According to the Insurance Information Institute, dog bites cost insurers $356.2 million in 2007, up 10.5 percent from the previous year.  Since 2003, the cost of these claims has increased by 28 percent. In response to the spike in claims, many insurers have decreased—and in some cases eliminated—dog bite coverage.

Homeowners and renters insurance policies that cover dog bite liability provide between $100,000 and $300,000 in coverage—which may not be enough. Since you are personally responsible for the remainder if the claim exceeds the limit, you may want to purchase supplemental coverage through a personal excess liability policy. This will provide between $1 million and $10 million additional coverage. The first $1 million costs $150–300 per year; the second million about $75; and each million after that, about $50 annually.

Dog bite coverage provides the victim compensation for:

• Medical bills
• Lost wages
• Pain and suffering
• Disfigurement
• Disability

Many insurers charge a higher premium after a dog’s first attack or exclude him altogether since he then poses an increased risk. Some companies will maintain coverage providing you enroll your dog in behavior modification classes.

If you have difficulty obtaining dog bite coverage because of a prior attack, you have a couple options:

• Check to see if you have the right to appeal under the law that determined your dog to be dangerous. Be sure to do this right away, as you only have small window in which to do it.
• Look into purchasing an umbrella policy to cover what your homeowners or renters insurance won’t. Let your agent know you need coverage specifically for canine liability, and explain the circumstances of your dog’s history.

If you cannot insure your dog against bites, you may need to surrender him to a rescue organization or a shelter. Keeping an uninsured dog with a history of aggression opens you to almost certain financial loss. Bear in mind, you must disclose his history or you’ll still be liable to future victims.