The dog should be fine if you teach your children NOT to taunt the dog, or walk on the dog's property. All dogs are territorial by nature. I thought this was common knowledge.
I know some people who can recite any type of dog breed, but when it comes to actual training knowledge, they might as well be speaking Russian to the dog, because the dog has not actually been taught the command. Truly ridiculous and irresponsible on their part.
OTOH, we have neighbor children who have been taught (NOT dissuaded) to tease a neighborhood dog. Won't be real funny when (not if, when) they get bit and have no recourse based on their past behaviors. The dog owners have tons of money for lawyers, and tons of resources for hiding their money, so even if they were sued, and by some miracle won (they would not), the taunting childs family would get nothing.
Parents need to be responsible, just as dog owners need to do their part. If reasonable precautions have been taken by the dog owner/s, there will probably be no case.