Katherine's American Bulldog seriously injured Scott. The lawsuit that followed resulted in an award of $250,559.96, but Katherine's insurance carrier offered only $25,000 toward the settlement. Katherine asked that the policy be reformed to provide full coverage for this loss.

Katherine worked with Barbara, her agent, to complete the application for coverage. She had honestly reported her dog's breed, which was not part of the certain breeds listed on the application.

The policy was issued with an Animal Liability Endorsement that limited dog bite coverage to $25,000 and excluded coverage entirely for those certain breeds listed on the application. Katherine was under the impression that the endorsement applied to only those breeds but she never confirmed that impression with Barbara. Barbara also believed the endorsement applied to only those certain breeds but never discussed that impression with either the carrier or Katherine.

Click here to see if the courts agreed to reform the policy because of the mistaken impressions on the part of both the client and the agent.

ISO introduced HO 24 77-Canine Liability Exclusion Endorsement in 2011 but many carriers have developed their own ways to limit coverage for third-party injuries that pets cause.

PF&M provides an endorsement checklist for you to use with your customers when discussing coverage. There is also an article that briefly explains each endorsement.

Click here to review the PF&M Homeowners' Endorsement Checklist

Click here to review the PF&M explanation of Homeowners' endorsements.

Insuring certain breeds of dogs and exotic animals in the standard market can be very difficult. However, the good news is that agents who love animals have alternatives available in the excess and specialty market.

Click here to read a Rough Notes Magazine article about two agents who specialize in liability coverage for dogs as well as many types of exotic animals.

Your clients often consider their pets to be treasured members of their households. Mentioning the possibility of that pet injuring another person could be similar to bringing up the subject of a child possibly being a bully. Sending an email, posting a blog, or putting an article in your newsletter may provide an opening for an honest discussion about loss management techniques and potential gaps in coverage that may exist.

Click here for an emarketing article you can use in your various communication methods.