To help mitigatethe risks, companies opening their office floors to pets shouldfirst create a written policy setting some ground rules about whatkinds of animals are allowed.  (Photo: Getty)

Dog owners know how difficult it can be to leave their furryfriends home alone all day, so corporations offering pet-friendly office policies can be a major jobperk for some.

But for the company, and for any fearful co-workers, having dogsin the office — that are not registered under theAmericans with Disabilities Act (ADA) or applicable statelaws — could pose some big risks.

Understanding policy coverages and liabilities

In terms of liability, if a pet bites an employee, it would mostlikely be covered under the employers' commercial general liabilitypolicy.

Related: 6 tips for employers to make workplacespet-friendly

Depending on the CGL policy, Loretta Wortersof the Insurance Information Institute says it willusually cover the cost of medical bills to the injured party andlegal and court fees related to the incident. However, there's isusually no coverage for the costs associated with reputationaldamages, such as if the organization suffers reputational issueslike negative media attention.

That doesn't necessarily protect the dog owner as liabilitycould extend to them should the victim decide to sue that person aswell. Where does the negligence fall? Is it the employer whoallowed the dog into the office? Is it the employee who, perhapsdidn't properly tether the dog?

The answer? Probably both.

To help mitigate the risks, companies opening their officefloors to pets should first create a written policy setting someground rules about what kinds of animals are allowed and establishany owner responsibilities, setting the parameters inadvance. This can include topics such as noise, the weight of theanimal, hair length or whether the animal is dangerous.

Helping to prevent any problems, this written policywill help reduce claims of discrimination or favoritism.

Dog bite data

Analyzing national dog bite claims numbers might helporganizations understand the risks of a pet-friendly office beforethey let employees bring their furry family members into work.

According to I.I.I., dog bites and other dog-related injuriesaccounted for nearly one-third of all homeowners liability claimdollars paid out in 2018, costing $675 million.

Looking at national dog bite statistics, an analysis ofhomeowners insurance data by the I.I.I. found that the number ofdog bite claims nationwide decreased to 17,297 in 2018, compared to18,522 in 2017— a 6.6 percentdecrease.

However, the average cost per claim increased by5.3 percent, as the average cost paid out for dogbite claims was $39,017 in 2018, compared with $37,051 in 2017.

So before you invite your employees' K9s into the office, checkyour commercial general liability policy, and talk to yourcarrier to make sure you're covered and understand the risks.

Read more: 

• Millennials would choose dogs in the office overother benefits, perks
• Is a pets-at-work policy wellness' new bestfriend?
• 5 reasons to offer a pet-friendlyworkplace