First let me explain the incident.

I have a 4 yr old 80 lb Rhodesian Ridgeback whom I've had for 1.5
years now. I picked him up from a ridgeback rescue and he has been
the best of companions. We've been through schooling, etc and I've
seen aggressive behavior out of him, normally only when we are in the
car. I think he gets confused between the car travelling past people
and people approaching the car. He thinks the latter and goes into
defensive mode to protect us.

Now, I kenneled my dog while I went out of town for a wedding. Since
the kennel was only open from 8:30-9:30 on Sun, I had a very good
friend pick up the dog since I was arriving back at 1 pm. Here is
where the fun begins...

He picks the dog up and on the way home, a woman is jogging on the
side of the road towards the car. No sidewalk and on a high traffic
road. Now, about a mile and a half down the road going 40 mph my dog
sees the jogger (no one can prove this) and launches himself out the
window. At this point my friend can not see what has happened but the
joggers statement is that the dog approached her with an attitude of
attack. The dog did not run over to her and attack and bite her. She
got scared and stepped to avoid him and sprained her ankle on a hill.
My dog proceeded to run into the woods where we could not find him
(Amazingly enough, he was sitting on the doorstep to the kennel at 7am
the next morning). After a week of not moving around too much his
legs were back to normal.

The jogger unfortunately has a lawyer for a sister and proceeded to
sue me for the "supposed" attack. No one can prove that he didn't go
after an animal or something else and she happened to be there. I
made the mistake of telling my insurance company and they are covering
the claim, but I received the dreaded "cancelation" notice 3 months
later. So far (the incident was in aug) she has claimed $500 for her
medical bills but a liability claim is in the works.

Now what do I do about insurance? My company will write me a new
policy if I exclude all dog incidents but I would like to have
coverage. I would rather try to pick up an animal only liability
policy. Does anyone know a company that sells policies such as this?

What legal actions can I take? Both against my friend and the jogger
(some of the injuries she is claiming sound phony). Can I counter sue
the jogger for insurance fraud if I find out she is faking or has
injuries not pertaining to this incident?

Any help would be appreciated... Mostly for the pet liability
insurance.

Thanks