Dental Practice Insurance That Pays for Itself
THE NEXT DDS
Whether you are a seasoned professional or just starting
out, all dentists need adequate insurance coverage. As a practice owner, you
need to protect yourself, your business, your employees, your family, and even
The second you open your doors, you are opening yourself and
your practice up to risk. Accidents happen and, despite your best efforts, you
won’t make everyone happy. It pays to prepare for the worst and run your
practice the best you can. Data indicate that it is likely you will be involved
in a litigious process at least once in your career.
Different Types of Insurance
liability—protects you from claims of injury or loss within your office
bodily/personal injury claims resulting from professional services
coverage—includes life, disability, auto, etc.
umbrella liability—pays above and beyond home and auto insurance
office expenses should you become unable to work
physical assets such as office, equipment, supplies and records
benefits—are useful in attracting and retaining employees
compensation—pays employee wages and medical
General Liability Insurance
Protects you from claims of injury or loss in your office
unrelated to professional services. For example, your practice could face a
bodily injury lawsuit if a patient slips and falls on a wet floor on the premises.
Covers claims of bodily and/or personal injury related to
professional services. Patients may claim alleged malpractice in treatment or
failure to treat, as well as errors or omissions while you are providing
Includes life, disability, homeowners/renters, and auto
insurance. Life insurance protects your family by replacing lost income should
you die. Term life insurance is a smart, cost-efficient first choice that does not
include an investment add-on. As your savings increases, the less life
insurance you are likely to need. Statistically, it is more likely that you
will become disabled than die while you are working. Disability insurance
maintains your salary during recovery from an illness or injury that prevents
you from working. Be sure to consider your future earning potential. The
importance of homeowners/auto insurance as it relates to your practice is in
the liability coverage (discussed in more detail as follows).
Personal Umbrella Liability Insurance
Is purchased with your homeowner’s and auto policies as a
supplement. Legal numbers can skyrocket in the event of an accident when the
injured learns that you are a dentist. An umbrella can protect your personal
and business interests in these cases. Approximately $400 a year can buy you up
to $2,000,000 of protection.
Covers office expenses, such as rent, payroll, utilities,
insurance premiums, loan payments (student and practice), membership dues and
advertising, if you suffer a disabling illness or injury.
Also called Business Property Coverage, protects the
physical office, including its contents, in case of fire, tornado, vandalism,
or other covered event. You may also want to consider Business Interruption
Coverage, which replaces business income based on past profit records if you
are unable to see patients due to damage.
Not only does offering Employee Benefits (e.g., health,
dental, and life insurance, pension plans, paid vacation) help attract and
retain quality employees but it can also help decrease absenteeism. Employees may
also accept a lower salary if offered benefits, which can result in savings for
Pays the cost of treating employee work-related illnesses or
injuries, including medical bills and missed wages. Most policies also include
Employers’ Liability Coverage, which protects employers from lawsuits involving
work-related accidents or illnesses.
Data Compromise Coverage
Should your data security ever be breached, Data Compromise
Coverage reimburses you for costs associated with notifying your patients,
offering credit-monitoring services, recovering damaged data, paying legal
fees, and more. In 2015, the average cost per record compromised was $217. The
majority (52%) of reported breaches were due to system glitches or human
Always plan for the unexpected—you can’t afford to find out
in the middle of a crisis that your insurance doesn’t cover that particular
event or that you are underinsured. An independent insurance agent can help you
identify the insurance coverages you need and present you with the best
protection/cost options. Consult your agent annually or biennially to review
your coverage, as your coverage needs will change as your business grows. It
pays to be covered!