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

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

Understanding policy coverages and liabilities

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

Depending on the CGL policy, Loretta Worters of the Insurance Information Institute says it will usually cover the cost of medical bills to the injured party and legal and court fees related to the incident. However, there's is usually no coverage for the costs associated with reputational damages, such as if the organization suffers reputational issues like negative media attention.

That doesn't necessarily protect the dog owner as liability could extend to them should the victim decide to sue that person as well. Where does the negligence fall? Is it the employer who allowed the dog into the office? Is it the employee who, perhaps didn't properly tether the dog?

The answer? Probably both.

To help mitigate the risks, companies opening their office floors to pets should first create a written policy setting some ground rules about what kinds of animals are allowed and establish any owner responsibilities, setting the parameters in advance. This can include topics such as noise, the weight of the animal, hair length or whether the animal is dangerous.

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

Dog bite data

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

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

Looking at national dog bite statistics, an analysis of homeowners insurance data by the I.I.I. found that the number of dog bite claims nationwide decreased to 17,297 in 2018, compared to 18,522 in 2017— a 6.6 percentdecrease.

However, the average cost per claim increased by 5.3 percent, as the average cost paid out for dog bite claims was $39,017 in 2018, compared with $37,051 in 2017.

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

Read more:

Instant Insights /

Dog-friendly offices: What are the risks?

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