There are no exclusions for liability to animals in the policy; therefore there is coverage for the dog, the question now is how much. The dog is not deceased, just injured. Using the principal of indemnity, the dog owners should be put back to where they were before the accident; which is with one healthy intact dog. I don't see that the value of a new pet shop dog fairly compensates them; their dog is “repairable” for lack of a better word, therefore, the cost of a replacement dog doesn't seem right. If the garage had been struck, the claimant would be entitled to have the garage door and any other damage repaired. Only if the garage door was totaled would the claimant be entitled to a replacement. I'm not sure how you could make a case that the dog was a “total loss” and that the company only owes for the value of a dog that's x years old.

As far as the dog being under the truck and the owner of the dog being partly responsible, it depends on your state's leash laws. If dogs are supposed to be leashed at all times then maybe you have a case; if not, the dog was in his own yard doing doggie things, the insured should have been paying attention to who or what was by the truck when he left.

In our opinion the cost of the dog's medical bills should be covered.