Most trainers will agree that having some type of insurance is a good idea. Although most of us hope we never have to deal with a claim, it is better to err on the side of caution than to go without. Unfortunately, sometimes accidents can and do occur, and usually when least expected. Therefore it is typically a good idea to make sure you cover yourself for the exposures unique to your individual business. As each trainer may be a little different from the next, it is important to know your individual exposures to risk and to close the gaps to your comfort level. That said, let's discuss the one insurance policy all professional trainers should consider, which is a general liability insurance policy-preferably one designed for trainers-that includes care, custody, or control coverage.
General liability Insurance protects you/your business against liability claims for bodily injury or property damage arising out of your premises, operations, products, completed operations, and personal and advertising injury. The following is a sample of liability limits common to a general liability policy, along with examples of how they apply to a professional dog trainer. Please note these limits are pretty standard in the insurance industry, regardless of which insurance company you are insured with.
$2,000,000 General Aggregate Limit
$2,000,000 Products/Completed Operations
$1,000,000 Personal & Advertising Injury
$1,000,000 Each Occurrence
$100,000 Fire Legal Liability
$10,000 Medical Payments
The General Aggregate Limit is the total amount of coverage you have for the year for all claims.
The Products/Completed Operations limit has two parts. The product liability part is meant to cover a tangible product, however, as a dog trainer, your product is the service or training you offer. The completed operations part is more applicable to trainers and covers the service or "operations" you have rendered to your client when the job is complete. An example of a completed operations claim would be as follows: You are contracted to train and pet sit a dog for someone who is away on business for several days. Unfortunately, you get the weeks mixed up on your calendar and fail to show up. As a result, the dog suffers from dehydration, uses the bathroom throughout the home, and chews up the client's furnishings. Since you failed to show you would be negligent and thereby responsible for the injuries to the dog and the damage to the home.
The Personal & Advertising Injury limit covers personal injury or advertising injury you cause to another person or company. Examples of personal injury are defamation, slander, wrongful eviction, or false arrest. A claims example would be as follows: Trainer A comes up with an advertising slogan that trainer B has a trademark on. Although trainer A did not know that the slogan was in existence, it confused a number of trainer B's clients and subsequently hurt trainer B's reputation in the area. Trainer B brings suit against trainer A for damages. However, please be aware most all general liability policies exclude intentional injury for slander or defamation. So if you set out intentionally to ruin someone's reputation on social media or elsewhere, there would be no coverage.
Each Occurrence limit is typically the most applicable limit on the policy. It covers you for up to $1,000,000 (or the limit listed on your policy) for any occurrence in which you are found to be legally obligated to pay for bodily injury or property damage of a third party. An example of a claim where this coverage applies: Two dogs in a training class get into a fight, and one of your clients attempts to break it up and gets bitten. A second example would be as follows: you are working with a dog in a public place such as a park, and the dog gets away from you and subsequently attacks another dog. And a third example: You are working with a dog with aggression issues in the client's backyard. The neighbor comes through the gate unannounced and is subsequently bitten. All of the above are examples of claims that have occurred to APDT members over the years! And in all, the injured party was entitled to compensation under the trainer's policy for their injuries. Please keep in mind that the insurance company does defend you (outside the limit listed). Depending on all the facts collected on each specific claim, your insurance company will then determine whether in your best interest to settle or to take the case to trial. Sometimes the cost to defend a claim and take to trial can be more expensive than settling, even if you could potentially win. Your insurance company has the right to make that judgment call as part of your insuring agreement.
The Fire Legal Limit typically does not apply unless you are renting an office or a facility. It covers you against fire damage that arises in or out of the space you rent. For example, you rent a space in a retail strip mall to hold your training classes. One night, you leave a space heater on and it subsequently causes fire to your space and the adjacent retail establishments. Since you would be negligent for causing the fire to the adjacent building, it would be covered under each occurrence limit to pay for property damage to a third party. The rented space that you occupied would be covered under the fire legal limit of $100,000 or the limit on your policy.
Medical Payments are a separate limit of liability used to pay small medical claims regardless of fault. An example of this would be if a person in a training class slipped at your facility and severely sprained an ankle. This claim would likely be paid out of your medical payments limit. Should the person then decide to file suit, the insurance company would defend you and if you are found negligent the claim would be covered under each occurrence limit above.
Unfortunately, most general liability policies contain exclusions for personal property in the insured's care, custody, or control. And for many types of businesses, this would be okay; however, for the professional dog trainer, it is perhaps the biggest exposure of all. This is because dogs are considered personal property under the law. Without including this coverage under your general liability policy, you have no insurance for the dogs in your care/classes! Fortunately, there are insurance companies that will remove the exclusion by endorsement. In doing so, they provide coverage for the dogs in your care, custody or control (including vet medical expenses) and extend this coverage wherever you go to train, and at all points in between, even in your vehicle!
Here are a few recent general liability claims examples:
1. While walking the dog with a client for a training lesson, the dog bit passerby on the leg. Total Paid $9,547
2. Client's dog fell during a training class and broke its leg. Total Paid $4,338
3. Client walked into the trainer's facility with her dogs for a training session. As they entered another dog in the care of the trainer attacked her dogs. The client attempted to break up the fight and was bitten on the hand/fingers. Her dogs were also injured in the attack. Total Paid $123,211.
4. Dog escaped from the trainer's facility and was found a few days later deceased. Total Paid $9,000.
5. While in training class, the client's dog got caught on another dog's leash and injured its knee, requiring surgery. Total Paid $4,307
6. Four-year-old accompanied the mother to a group training class and was bitten in the face by the insured's dog. Total Paid $57,540.
7. Dog ingested a ball during a training class, and required surgery. Total Paid $8,143