Heard the one about the raccoon and the destroyed interior of an unlocked truck? What about the coyote that ensured a company’s sprinkler system was permanently extinguished? Or the fowl play from a turkey which had a gobble of someone’s leg? These aren’t just a list of bad jokes but are actual examples of some of the many claims insurers receive involving animals and insects.
Based on AGCS analysis of more than 470,000 global corporate and specialty insurance industry claims over the past five years in its latest Global Claims Review: Top Causes of Corporate Insurance Losses report, almost 2% (6,888) of these claims have involved animals, costing in excess of $500mn.
Dog incidents such as bites and scratches are the most frequent cause of animal-related claims, accounting for 30% (2,077). On average they cost almost €7,000 ($7,940). The second most common cause of loss is deer incidents (particularly involving collisions with vehicles). On average, these incidents cost in excess of €5,500 ($6,240) and account for 17% (1,186) of all animal-related claims received by insurers. The peak period for incidents (and claims) in the US is during October and November each year – otherwise known as the rutting season, which is when deer are engaged in fierce mating battles.
By far the most expensive insurance claims result from bird incidents, which are the third most frequent cause of animal-related claims (1,146). This is hugely influenced by one type of loss – bird strikes with airplanes – for which there have been over 900 claims in the past five years. The average bird strike claim costs around €322,000 ($368,000) in insured losses.