But here the problem here isn't that the dog died, it's how Wag has handled the problem afterwards, and how their (poor) communication suggests that they didn't really do their due diligence in vetting the walkers.
EDIT: a similar thing happened in my country (the Netherlands) where an Uber driver hit (and killed) a young woman after driving around in circles (a technique used to get more clients apparently, instead of parking somewhere), and Uber immediately pulled the "he is not an Uber employee and he wasn't with an Uber customer when it happened, so it's not our fault card". which resulted in public outrage[1]. They could have just send some flowers to the family, now they got a PR crisis instead.
[1]: https://www.volkskrant.nl/nieuws-achtergrond/een-uber-chauff...
Someone explained it to me as when an American says "sorry" they mean "I'm sorry I did a bad thing to you" and when a Brit says sorry they mean "I'm sorry a bad thing happened to you". Which also explains the not uncommon American response to "sorry" of "Why? It wasn't your fault".
If something that's out of my control happens to someone I might say sorry and mean "I'm sorry a bad thing happened to you".
I'm British and find that sometimes I think similarly to another person who is British, and at other times I think differently to another person who is British. It's wild.
Pets are treated as simple property by US law and the liability is strictly limited to the cost of replacement. There has never been a civil judgement in the US beyond that. There are CRIMINAL issues involving treatment of animals, but none of those are applicable here.
This is pure incompetence by WAG's legal and customer-service departments.
Likewise when you take money for a service you are accountable for not letting their dog run into the road which is usually pretty easy for an animal on a leash.
What did wag do wrong that we know?
The walker wasn't the person on the profile. They are withholding information regarding the incident. They tried to force the victim to agree to be legally silenced in order to pay for direct costs incurred.
This is 1000 times worse than paying nothing.