Dental Shield Digest

The Most Common Mistakes Dentists Make When Buying Disability Insurance

Thu, 30 Apr 2026 14:04:25 GMT

The Most Common Mistakes Dentists Make When Buying Disability Insurance

Disability insurance is one of the most important financial decisions a dentist can make, as it impacts long-term financial stability and career security. Early in a dentist’s career, this type of coverage may seem unnecessary or easy to postpone. After graduating from dental school or completing a residency, individuals are often young, healthy, and managing significant financial obligations. Making disability insurance feel like a lower priority. However, the reality is that neither health nor income is guaranteed. Given the substantial investment of time, education, and financial resources required to become a dentist, the consequences of losing the ability to practice can be severe. Disability insurance is designed to grow with a professional throughout their career. There are several common mistakes that can undermine its effectiveness.

One of the most frequent mistakes is delaying the purchase of a policy. Disability insurance premiums are closely tied to an individual’s age and health at the time of application. Many insurance providers offer discounted rates, ranging from 10% to 30% to individuals who enroll shortly after graduation or during residency. Graduating dentists have 90 days after graduation to secure these discounts. Waiting longer than 90 days after graduation results in higher premiums and increases the likelihood that a medical condition could lead to exclusions or limitations in coverage. While many dentists intend to secure coverage later, postponement often leads to reduced options and higher long-term costs.

Another common error is selecting a policy based solely on price. While affordability is an important consideration, the least expensive policy may not always provide adequate protection. At CFS we work with A+ Rated Providers that provide both cost effectiveness and quality. There are some subpar providers that will sell you a cheap policy without disclosing the lack of quality. Disability insurance is fundamentally about income protection. Policies with insufficient coverage or weak terms may fail to meet financial needs in the event of a disability. Focusing exclusively on cost can result in gaps that only become apparent when a claim is filed, at which point it may be too late to make adjustments. We will walk you through the different quotes with our providers and their respective riders to ensure you buy the policy best suited for you.

A third critical mistake is failing to fully understand the structure and details of the policy. The role of riders and definitions is often a source of confusion. The “own occupation” definition is especially important. A strong own-occupation policy ensures that benefits are paid if the insured individual is unable to perform the specific duties of dentistry. Regardless of if they are capable of working in another profession. Without this provision, benefits may be reduced or denied if the individual can earn income in a different field. Additionally, some policies may include exclusions for pre-existing or limiting health conditions, and misunderstanding these terms can lead to unexpected coverage gaps.

Lastly, relying too heavily on group disability coverage is another common mistake. While employer-sponsored or association-based plans can serve as a useful supplement, they are often limited in scope. You want to take advantage of school discounts and your age after graduation. Group policies may not be portable if employment changes. Additionally, benefits are frequently taxable if premiums are employer paid. In contrast, individual disability policies offer greater flexibility, stronger contractual definitions, and more reliable long-term protection.

Disability insurance is not simply about having coverage, it is about having the right coverage . Avoiding common mistakes such as delaying enrollment, prioritizing price over quality, and failing to understand policy details can significantly improve financial security. By taking the time to carefully evaluate options and structure a policy appropriately with CFS, dentists can protect both their income and their future against unforeseen circumstances.

Written by: Julia Breneman

What Happens If You Can’t Work for 6 Months?

Mon, 20 Apr 2026 21:25:44 GMT

What Happens If You Can’t Work for 6 Months?

Imagine this:

You wake up tomorrow with an injury or illness that makes it impossible to work—not forever, just for a few months.

At first, it doesn’t feel catastrophic. You assume you’ll recover, get back to work, and move on.

But then reality starts to set in.

Your paycheck stops.

Your expenses don’t.

The Financial Reality Most People Don’t Think About

Even a short period without income can create real financial pressure.

Think about your monthly expenses:

Rent or mortgage
Utilities
Car payment
Groceries
Insurance
Student loans

Now imagine covering all of that… with no paycheck coming in.

Most people have some savings—but for many, it’s not enough to comfortably cover 3–6 months of expenses , especially when unexpected medical costs may also be involved.

And while friends or family may help, that’s not a long-term solution.

“Wouldn’t My Job Cover Me?”

This is one of the most common assumptions—and one of the biggest gaps.

Some employers offer short-term disability coverage, but:

It often replaces only a portion of your income (typically 40–60%)
Benefits may be taxable
Coverage usually ends after a few months

After that, you may need long-term disability coverage—or you may be left without income entirely.

Understanding the Difference: Short-Term vs. Long-Term Disability

Here’s a simple way to think about it:

Short-Term Disability (STD):

Covers you for the first few months you’re unable to work (often 3–6 months)

Long-Term Disability (LTD):

Kicks in after that and can provide income for years —sometimes until retirement age

Together, they’re designed to protect your income—not just for major, life-altering events, but for situations that are more common than people realize:

Injuries
Surgeries with recovery time
Pregnancy complications
Illnesses that require extended time off

It’s Not Just About Worst-Case Scenarios

When people think about insurance, they often think in extremes.

But the reality is, a temporary inability to work is far more common than people expect—and it doesn’t take a worse-case scenario to create financial stress.

Even a few months without income can:

Drain savings
Increase reliance on credit
Delay financial goals
Create unnecessary stress during an already difficult time

A Simple Question to Ask Yourself

If your income stopped tomorrow, even temporarily:

How long could you comfortably maintain your current lifestyle?

Not just get by—but maintain it .

Your income is one of your most valuable assets. Protecting it isn’t just about planning for the worst—it’s about being prepared for the unexpected.

Final Thoughts

Most people insure their homes, cars, and even their phones—but overlook the one thing that makes all of those possible: their income.

Taking a few minutes to understand your current coverage—whether through your employer or individually—can make a significant difference if life takes an unexpected turn.

Written By: Reghan Handley

The Hidden Costs of Running a Dental Practice

Tue, 14 Apr 2026 19:29:13 GMT

The Hidden Costs of Running a Dental Practice

Running a successful dental practice requires both excellent patient care and effective business management. While most dentists budget for major expenses such as rent, equipment, and payroll, hidden costs can erode profitability if left unchecked. These less visible expenses can accumulate quickly, making it difficult to grow the practice and maintain financial stability.

Staff turnover is often an underestimated expense in dental practices. Recruiting and onboarding new team members involves costs beyond salaries, including recruitment fees, training time, and reduced productivity during transitions. Frequent staff changes can disrupt workflow and diminish the patient experience, ultimately affecting retention and revenue. Practices that invest in a strong culture, competitive compensation, and efficient training systems typically reduce turnover and maintain consistent performance. If you ever run into issues, feel free to reach out to one of our regional advisors to put you in touch with one of our staffing partners.

Another area where costs often go unnoticed is equipment maintenance and downtime. While the initial investment in dental equipment is significant, the ongoing costs associated with keeping that equipment running smoothly are frequently underestimated. Minor issues can escalate into major repairs if they’re not addressed early, and unexpected downtime can result in canceled appointments and lost production. Planning for routine maintenance and setting aside a budget for repairs can help prevent these disruptions and protect long-term profitability.

Insurance is another critical area where hidden costs can emerge, particularly when coverage is not properly aligned with a dentist’s needs. Many practitioners carry standard policies, but gaps in coverage, such as insufficient disability insurance, limited malpractice protection, or an underinsured business owner policy, can expose them to significant financial risk. Without the right safeguards in place, a single unexpected event can have long-lasting consequences. Regularly reviewing policies and ensuring they match both personal income and practice size is essential for minimizing risk.

Operational inefficiencies, especially in scheduling, can also create substantial hidden costs. An empty chair represents lost revenue that can never be recovered, yet many practices struggle with last-minute cancellations, no-shows, and underutilized appointment slots. Over time, these inefficiencies can add up to a significant loss in production. Implementing systems like automated reminders, tracking patient behavior patterns, and optimizing scheduling templates can help ensure that chair time is used as effectively as possible.

Inventory management is another area where money can slip away. Ordering too much ties up cash flow and leads to waste when materials expire, while ordering too little can disrupt daily operations and create unnecessary stress. Without a clear system in place, these small inefficiencies can compound over time. Assigning responsibility for inventory management, tracking usage trends, and building strong relationships with vendors can help reduce waste and improve cost control. Another good resource to take advantage of is Torch. They are essentially Amazon for dental offices, often allowing owners to save significantly on inventory.

Written by: Michael Magargee

Why Is My Bank Asking For A Collateral Assignment of Life Insurance And What Does It Mean?

Tue, 07 Apr 2026 17:52:48 GMT

Why Is My Bank Asking For A Collateral Assignment of Life Insurance
And What Does It Mean?

Everything is done for you to buy that practice, you have been approved by the bank, the lease has been signed, and the bank is ready to disburse the loan so you can be a practice owner! There is just one issue, they need you to collaterally assign them a life insurance policy. Now usually no one ever explains what this actually means and what you should do.

Should you assign your personal policy to them? Do you need to get a new one?

There are many different options and while no one will stop you from doing either of them, there are different considerations to be made when making that decision.

What is a Collateral Assignment?

When getting a loan for a dental practice, the bank will almost always require the borrower to assign to them a life insurance policy that will cover the amount of the loan for the term of the loan. It basically means that if the borrower were to pass away during the loan term, the bank still gets the money they were owed, and the loan is paid off by that life insurance. If that is a requirement from your bank, then there is no getting around having to assign the policy to them with the help of your agent.

Should I Assign My Current Policy or Get Another One?

The first point we always help our clients to make is that personal life insurance is just that, personal! It is almost always in someone’s best interests to separate church and state in a sense when thinking about their own finance’s vs the finances of their business. If you already have a personal life insurance policy, that’s great! That policy is meant for your family and next of kin if you pass away.

However, while the prospect of having to get life insurance again may not be what you were hoping for, the flip side is that if you were to assign that policy to the bank and then pass away, your family will most likely not get the payout they were planning to live on. Reason is, because the bank will need to satisfy their loan, and that is exactly what is avoided with the concept of separating business vs personal finances and getting a second policy!

What Does Getting a Second Policy Entail?

It’s fairly simple since it is the exact same process as the first! Starting with figuring out the term and amount of the loan, getting a quote, filling out the application and then getting the policy! Term life insurance tends to be very cost effective for most people when it comes to the amount and terms one needs for the collateral assignment. So, it is almost never an issue with budgeting or cost as well!

There is also the added benefit, because it is exclusively tied to the loan, if you pay it off early you can always cancel the policy since it wouldn’t be needed anymore. Along with that, since the bank is not the beneficiary of the policy, but the assignee is, there is still a beneficiary as well (still usually your family or next of kin). So, if the worst still does come to pass and the practice is paid 50% off, then the bank still gets what is owed to them. But then the beneficiary may get something that they weren’t expecting during a hard time too.

I hope that helps all the new practice owners out there! We at CFS Dental Division are always here to help and work in your best interest to figure out what is going to not just be best for you now, but in the future as well!

Written by: TJ Stanton

Life Insurance: Term Life V.S. Whole Life

Mon, 06 Apr 2026 21:22:37 GMT

Life Insurance: Term Life V.S. Whole Life

There will come a time in your life where you will be introduced to life insurance. It may be from a salesman, a letter in the mail, or your workplace may offer it to you. You might ask, what is the point of life insurance and why do I need it?

Life insurance is a financial safety net for your loved ones in the tragic event of your passing. Likewise, a loan may require life insurance as well. There are two main life insurance policies, term life insurance and whole life insurance. They both serve the same core purpose; however, they differ in structure, cost, and benefits.

Term Life Insurance

Term life insurance provides you with coverage for a set amount of time. Most term life insurance policies are set between 10-to-30-year terms. This means that you are covered by life insurance during that timeframe. For example, a 30-year-old obtaining a 20-year term life insurance policy is covered until they reach age 50. Once they reach age 50, the policy no longer covers them and their family unless renewed or converted.

The main highlight of term life insurance is the affordability. Term life insurance uses a fixed payment throughout the duration of the term length. The younger a person is when purchasing a policy, the more cost effective the rate will be. When purchasing life insurance, be sure that your policy has the word ‘renewable’ or ‘convertible’ included. Those types of term life insurance policies guarantee that you will be able to continue your life insurance coverage either as another term policy, or as a whole life policy. Renewable or convertible policies also do not usually require a new medical exam as well.

The downsides of a term policy are fairly straight forward. Term policies only offer death benefits and nothing further. This can dissuade some as they may see term policies as paying the premium just in case something bad happens. Also, once a term policy matures, your premiums will adjust. This means that after a term ends, it may become more expensive than before to renew your term. There will be a reason to purchase term insurance, and that reason should outweigh the limiting factors of a term life insurance policy.

Whole Life Insurance

The other aforementioned life insurance is a whole life insurance policy. Whole life insurance offers coverage for the entirety of a person's life or once a person reaches 100 years old. The main feature of whole life insurance, outside of the death benefit, is the cash value that the policy can hold which grows tax deferred.

As stated, whole life policies have a cash value element to them that a term policy does not. On top of the death benefits, whole life policies have a minimum interest rate that grows the cash value along with your premium payments. On top of this, you do not pay taxes on the cash value growth while the policy remains in place. A whole life policy can be seen as an investment vehicle for those that have maxed all their retirement options and wish to have another way to invest their money. Whole life insurance policies offer everything a term policy does, but with a cash value and lifelong protection.

While whole life insurance policies offer a lot, they may not be great for everyone. Whole life policies are more expensive than term policies since you are paying extra because of the cash value. A person that is more attracted to a lower price tag could opt for a term policy instead.

Whole life policies can also be hard to understand. The complexity of the cash value growth and when taxes finally come into effect make it harder to judge how much of that cash value is actually liquid. If you have a lower income, or your retirement options are not maxed out, then a whole life may not be the best choice for you.

Which Type Is Right For You

By this point, you may be favoring one type over the other but pause and think of your current situation. Do you have a family? Do you make enough to cover a premium for multiple years? Are my retirement accounts at capacity?

Buying life insurance is not a rash decision as it is a policy you hold for at least a decade. If you are young, budget-conscious, or are concerned with protecting your family, then term life insurance is better for you. It offers a lower premium given your current age and gives coverage for the set amount of time that you specify. If you are nearing retirement but are still working and you are looking for another way to invest, then whole life insurance can be the better choice.

Insurance as a whole depends on your current situation in order to meet you where you are. It is best to make an educated decision, rather than pay for an expensive one for years to come.

Written by: Nate Young

Addressing Vicarious Liability Risks for Dentists

Wed, 25 Mar 2026 15:13:02 GMT

Addressing Vicarious Liability Risks for Dentists

Vicarious liability is the responsibility of a superior for acts committed by a subordinate. As a dentist or dental practice owner, if your employee causes harm through an error or through negligence, you can be held liable for their mistake and named in a claim or lawsuit.

There is no insurance coverage type called “vicarious liability.” Instead, it is a type of risk that can occur in a variety of situations. Therefore, there are a variety of insurance coverages that respond to different types of vicarious risk.

The challenge is that vicarious liability is often an invisible risk, so it is important to have regular or in-depth conversations with your insurance agent or broker. They can help you identify vulnerabilities in your practice that you may not see.

When Might a Dentist Experience a VL Exposure?

In malpractice, there are a number of ways you can open yourself to a vicarious liability claim. Some of these include:

Creating a corporate entity
Opening a practice
Hiring associate dentists as employees or contractors
Bringing a specialist to your office, such as an anesthesiologist or oral surgeon

Creating a corporate entity, even if you are a sole practitioner:

If you are an independent contractor who works on a 1099 basis, chances are your accountant has suggested that you form a corporate entity to be paid through, for the tax benefits, instead of accepting payment as an individual (E.g. Jane M. Doe DDS LLC).

If you have an incident with a patient during clinical care that leads to a malpractice claim or lawsuit, the chances are good that the plaintiff’s representation will name your corporate entity in the action in addition to yourself. If you do not have insurance coverage for that corporate entity, your malpractice policy will respond to your defense but will not respond to defend the corporation, and you will experience a gap in coverage. Fortunately, this type of gap is easy to close.

Most insurance companies have the ability to add Shared Limits Entity Coverage to your individual malpractice policy with little or no additional premium. That is because, in this scenario, the corporate entity and the doctor are basically one in the same.

“Shared Limits” means that the per-occurrence and aggregate limits of liability found in your policy will extend over yourself and your corporation.

Opening a practice where you employ dental assistants and hygienists:

As soon as you open your own dental practice, you run the risk of a vicarious liability. Any dental assistant, hygienist, or dental technician treating patients is doing so under your supervision. If they have an incident, you are liable.

If you are the only doctor practicing in your office, the Shared Limits on your malpractice policy may suffice. However, if you have associate dentists working with you, Shared Limits will not be enough. In this case, you will need a separate Entity Policy . More on this in the next section.

Bringing on other associate dentists as employees or contractors:

An Entity Policy is essentially a malpractice policy for your corporation. It covers your practice for the actions of the doctors working there. In this scenario, you would carry your own malpractice. You would also carry the Entity Policy that defends the corporation. And each of your associates would carry their own individual malpractice policies.

This is key. An Entity Policy covers your practice for the actions of the doctors working there, but it does not cover those doctors. They still need to maintain their own malpractice coverage.

The premium cost for a separate Entity Policy would be about 10% of the cost of your individual malpractice premium.

When a specialist treats patients at your office:

Many dentists believe that, when they have an outside specialist visit the office, such as an anesthesiologist or oral surgeon, that specialist is responsible for their own malpractice, and leave it at that. However, just because a visiting specialist is not your employee, that does not mean you cannot be held responsible for their actions.

When that specialist attends to your patient, it is understood that they are doing so at your request and within a course of treatment you have prescribed.

If you work with an attorney or dental consultant, they may advise you to have all your associates, contractors, and specialists add your practice to their own individual malpractice policies as an Additional Insured . This advice is part of a movement within the dental sphere to push risk downstream.

The argument here is: if your employee or contractor makes a mistake, why shouldn’t they be held liability instead of yourself? With the Additional Insured provision, their policy would respond to your practice’s defense if they make an error.

However, while helpful, there are several limitations to this approach:

The Additional Insured provision puts the onus on the employee to defend the owner, which many associates consider an unfair re-distribution of the risk.
If you rely on this strategy, you are also relying on your employee to open the claim. It’s not your policy, so you cannot do it yourself. Yes, you may have some protections, but you are also relinquishing control of your own defense.
Even if your employee adds you as an Additional Insured, that may not prevent you from being named in a claim or lawsuit. Why run the risk of having a gap in coverage when you can take steps to help ensure your own defense?

Consider a Group Policy.

If you are a practice owner with associates, employees, and specialists, you may want to consider a Group Policy . This option tends to provide the most comprehensive coverage for a practice with multiple doctors.

In this scenario, a majority of the doctors at your office would work with a single insurance company, and each would carry comparable coverage with the same limits. The corporation would also have its own Entity Policy. There is no need for an Additional Insured provision. Your risk is diminished because everyone’s coverage is uniform, and everyone has their own individual limits of liability (including the corporation) without having to share.

Other Vicarious Liability Risks Faced by Practice Owners

Practice owners can face vicarious liability risks from other angles besides malpractice, including some of the following:

An employee uses their personal vehicle to run a work-related errand and has a car accident. That employee is operating within their job duties; therefore you may be held liable. If your Business Owner’s Policy includes Hired and Non-Owned Auto coverage , your practice would be covered if named in a lawsuit due to that employee’s accident. It’s important to note that your Business Owner’s Policy would not defend the employee. They still need to carry their own personal auto policy
An employee gets into an altercation with, or bullies, a stranger while wearing a shirt with your practice logo on it. In a legal action, an attorney would be only too glad to claim you have liability for the violator’s actions. As a business owner, you are a juicy target (far more than one individual employee). The liability coverage inside your Business Owner’s Policy may respond to your defense.
An employee uses a photograph they found on the internet in your marketing materials or on your website, only to discover that it is owned by a stock photo company. That stock photo company then sues your practice for Copyright Infringement. The employee made an error while working within the scope of their employment, therefore you are liable. The liability coverage inside your Business Owner’s Policy may respond to your defense.

If you have any questions or concerns about your coverage, or if this article has exposed a vicarious liability risk that you are facing, now is the time to contact your agent for their assistance. They want to help you. And your insurance company wants you to avoid gaps in coverage.

Written by: Eric Harper

Is Patient Perception Your #1 Risk

Wed, 18 Mar 2026 02:24:14 GMT

Is Patient Perception Your #1 Risk

When you hear someone say “Dental Malpractice,” where does your mind go first? Do you think about the premium you pay for insurance? Do horrific stories of patient allegations fill your mind?

For me, I remember a conversation I once had with a mentor. “What do you think causes most malpractice lawsuits?” she asked. I began thinking of a long list of complex procedures that often make the headlines when it comes to high payouts. “Is it anesthesia? Surgical placement of implants? Third molar extractions?” My mind raced, but her simple answer surprised me: “Bedside manner.”

The Common Defense

If you ask an insurance professional how to defend against malpractice claims, they’ll likely say “Risk Management.” This is a good starting point. Within the context of dental malpractice, risk management strategies often involve controls like patient consent forms, advanced patient charting, and medical history reviews. These mechanisms are meant to solidify a dentist’s defensibility when a complaint or lawsuit is filed.

Another answer you will likely receive is “Professional Liability Insurance” (aka dental malpractice coverage). This is the invisible armor every practitioner wears - a necessary safety net designed to catch them if a root canal goes south or a crown doesn't seat. But here is the twist: while malpractice insurance is a legal and financial necessity, it is fundamentally a reactive tool. It is the "break glass in case of emergency" option for when the patient complaint has already been launched.

But what if the best way to keep that glass from breaking isn't found in a thicker insurance policy or more complex risk management strategies? How can a lawsuit be prevented from gaining traction in the first place? Is this possible, or just a pipe dream? Perhaps the answer can be found by first investigating the evolving nature of patient complaints.

The evolution of the dental chair

For decades, patient perception of whether a dentist was a “good dentist” could be determined with a single question: “Did it hurt?”

But as we navigate the second decade of the 21st century, the narrative in the dental chair has shifted. The modern patient isn't just worried about the needle; they’re worried about the vibe. They’re concerned about the "upsell," and whether their dentist is a clinician or a salesperson in scrubs.

From clinical fear to financial friction

If you browse through communities like Reddit, Quora, or other popular forums, a common refrain isn’t "It hurt." Instead, it’s: "Is my dentist scamming me?" Patients walk in for a routine cleaning and walk out with a $4,000 treatment plan involving procedures they never knew existed. Social media has become a breeding ground for these frustrations, with users frequently sharing photos of their X-rays to crowdsource second opinions from strangers online.

In a 2024 legal review, a patient (referred to as Bobby) took advantage of a $59 "First-time patient special." After the initial evaluation, the dentist proposed an extensive treatment plan. Bobby later filed a lawsuit, alleging the "special" was a fraudulent lure designed to trap patients into high-cost procedures once they were in the chair [1].

A decade of change

The complaints of yesteryear were simpler, more mechanical. If we look back a decade or more, the data paints a different picture of patient dissatisfaction.

Research from 2010–2015 indicates that while clinical treatment was always a top concern, "Charging and Cost" was a much smaller slice of the pie, often hovering below 10% [2]. By 2025, cost-related complaints and confusion over "In-network vs. Out-of-network" have surged, occasionally doubling in frequency [3]. When patients stop viewing their treatment as healthcare and start seeing it as a sale, trust evaporates.

The high cost of silence

It would be incorrect to say that clinical concerns are a thing of the past. Almost all malpractice lawsuits are hinged on allegations of procedural error. But these “errors” are often exaggerated by a lack of communication .

In a 2025 malpractice analysis, a patient with a history of diabetes sought dental implants. Allegedly, the dentist proceeded without documenting a discussion of the high risks associated with the patient’s health history. When the implants failed, the patient sued not just for the failure, but for the lack of warning . The expert review highlighted that 25% of patients who seek a new practitioner do so because of "poor communication about expectations" [4].

The anatomy of a relationship

If you spend enough time scrolling through social media, a pattern emerges: people don't just sue because of an error; they sue because they felt disrespected .

A landmark study published in the Journal of the American Medical Association (JAMA) remains one of the most powerful insights into this phenomenon. It found that the leading indicator of a malpractice suit wasn't medical negligence at all—it was the doctor’s communication style [5]. In fact, doctors who had never been sued spent an average of just three minutes longer with their patients (18.3 minutes vs. 15 minutes). Those "no-claim" doctors were more likely to use humor, ask for the patient's opinion, and orient them on what to expect.

On social media, this plays out in real-time. Popular advice for finding a "good" dentist rarely mentions technical credentials or schools. Instead, users point to things like:

Make the invisible visible: As one Reddit user recalled when his dentist used an intraoral camera: "When he showed me the crack on the screen, I stopped feeling like he was being a salesman and started feeling like he was a partner" [6].

Cost Transparency: The "blind bill" is a common complaint. Providing a written estimate before a single tool is touched and using a "No Surprises" approach could be more effective at preventing lawsuits than any signed consent form [7].

Humor and Humanity: Patients who describe their dentists as "funny" or "warm" are statistically less likely to file a complaint, even when complications occur [5].

The reality, as confirmed by both data and the court of public opinion, is that you don’t sue a friend . Only 1% of patients who experience an actual negligent error end up filing a claim [5]. Why? Because they like and trust their doctor. They see the person behind the mask. It seems my mentor was right about bedside manner.

The Golden Rule as the Gold Standard

I understand—there are numerous cases of unreasonable patients, frivolous allegations, and downright ridiculous lawsuits. You can’t always choose who enters your office. But we have reached a point in modern healthcare where we must recognize that the most effective risk management tool in existence isn't a consent form or an insurance policy. It is respect .

Building rapport is the ultimate insurance. When a dentist practices the Golden Rule, the entire dynamic of the office shifts.

Formal protections like charting, consent, and malpractice insurance are the bare minimum required to operate. They are the floor. But relationship-building is the peak of professional excellence, effectively the ceiling. You can have the most bulletproof paperwork in the state, but if you are dismissive or cold, you are inviting a complaint. Conversely, a dentist with a warm heart and a listening ear can survive almost any clinical complication because the majority of their patients know, beyond a shadow of a doubt, that their dentist was on their side.

In the end, the most important tool in the operatory isn't an iTero scanner; it's the ability to look a patient in the eye and make them feel like their humanity matters more than your wallet.

Footnotes

[1] Professional Solutions: Case Studies in Dental Billing Red Flags (2025). [2] General Dental Council (GDC): Trends in Written Complaints 2010-2024. [3] Dental Update - MAG Online Library: "What Makes a Patient Complain?" (2025).[4] The Doctors Company: MPL Case Analysis on Inadequate Informed Consent (Summer 2025). [5] Wendy Levinson, JAMA: "Physician-Patient Communication: The Relationship with Malpractice Claims" (Study 1997; verified meta-analysis 2024). [6] Reddit r/Dentistry: "Community Consensus on Trust Indicators" (2026).

[7] My Social Practice: "Reputation Management and the Impact of Transparency" (2026).

Written by: Matthew Christy

Insurance Agent vs Insurance Broker...there's a difference?

Tue, 03 Mar 2026 20:04:11 GMT

Insurance Agent vs Insurance Broker…there’s a difference?

After reading my teammate Nick’s article last week, I thought it would be prudent to take a deeper dive into two titles that are treated as synonymous, typically for ease of client understanding, despite being very different in practice and responsibility.

An insurance agent is an insurance professional whose duty is to the insurance carrier.

A insurance broker is an insurance professional who negotiates on behalf of individuals with insurance carriers.

This distinction is key as insurance works a bit counter to how the public thinks. To break it down, an insurance policy is essentially a contract whereby an individual will pay a premium (money) to an insurance carrier that will pay for potential claims (injuries, accidents, property loss, etc.), if these damages occur in a particular fashion. What most of the public is unaware of is that the insurance company is not offering a policy to the individual, it’s the inverse. When an individual completes an application, they are presenting an offer to the insurance carrier of your risk transfer, and if the carrier accepts the offer, they dictate the price. The contract isn’t bound until payment is made, but the initial design of the offer lies in the hands of the client, not the insurance company.

Captive Agencies and their agents

If you work with an insurance agent, their responsibility is to the insurance company they are affiliated with, not to the purchaser of the insurance policy. The insurance agent only has access to sell products that are offered by their affiliated carrier, and so the options may be limited in scope to what the company is willing to take on themselves. Additional coverage for particular perils (specific causes of loss) may be outside of one insurance carrier’s risk appetite, and so they may not extend coverage for certain actions, or the price may be exorbitant to do so. There may be different insurance companies with wider appetites or lower prices, but an agent doesn’t necessarily have access to those options, so there is a higher likelihood of declinations, lesser coverage offered, or higher-than-market costs for insurance. From an insurance buyer’s perspective, how can this be avoided?

Enter the Insurance Brokerage, and their brokers

An insurance broker’s job is to negotiate on behalf of the individual, not on behalf of the insurance carrier. A broker has the ability to go to market, shop out the same risk exposure across multiple carriers, and then go back and forth with several carriers to get the best combination of price and coverage limits for their client, the individual. It’s more work, as instead of one application, there are multiple with their own formats and questions to answer. The commission (how an insurance carrier pays the insurance professional) can be less versus the compensation structure with a captive agency, but insurance brokers trade a lower commission payout for a wider net of carrier options that allow for the broker to tackle harder to write risks (coastal exposure, higher percentage of surgical procedures, adverse claims history, etc.). As there is no tie to an individual carrier, if the benefits lessen or the pricing rises above market-rate in a given year, the broker can rinse and repeat the process, going back to market and finding the best solution at the current time. It’s this level of flexibility that allows a broker to serve their clients for years to come as variables in the market change.

At CFS Dental Division, we operate as an insurance brokerage across the United States. We take pride in our market offerings, our ability to educate our clients on the pros and cons of their policy choices, and our flexibility to adapt to an ever-changing market. If you’re interested in having a partner who negotiates for you and has your back as life changes, you can reach out to us here .

Written by: Conor DePalma

Why shopping for your personal & business insurance through a broker is more advantageous than shopping direct through a carrier.

Wed, 25 Feb 2026 00:01:41 GMT

Why shopping for your personal & business insurance through a broker is more advantageous than shopping direct through a carrier.

When it comes to protecting your business or personal assets, how you shop for insurance matters just as much as what you buy. While going directly to a single insurance company may seem convenient, working with an independent broker offers significant advantages that can make a real difference when it counts.

First, choice matters . A direct insurance company can only offer its own products. A broker, on the other hand, represents multiple carriers. That means instead of getting one option, you get access to a range of coverage forms, pricing structures, and underwriting appetites. This competition often results in better coverage and more competitive premiums.

Second, brokers work for you — not the insurance company. Their role is to advocate on your behalf, helping you compare policies objectively and understand the fine print. Insurance contracts can be complex, with exclusions and limitations that aren’t always obvious. A broker helps you navigate those details, so you don’t discover gaps in coverage after a claim.

Third, as your needs change, a broker can adapt with you . Whether your business grows, your risks evolve, or the market shifts, a broker can re-shop your policy and negotiate with carriers to ensure your coverage keeps pace.

Finally, when a claim happens, having a broker in your corner can be invaluable. Instead of facing the carrier alone, you have a professional who understands the process and can help facilitate communication.

To wrap it up, buying direct gives you one perspective. Working with a broker gives you options, advocacy, and expertise — and that combination often leads to stronger protection and better long-term value for you and/or your business.

Written by: Nick Cepparulo

What to Look for in a Disability Policy

Mon, 16 Feb 2026 23:32:50 GMT

What to Look for in a Disability Policy

When purchasing a personal disability policy to protect your income, it is crucial to purchase a policy that properly reflects your specific needs as a dental professional.

Within disability policies there are key features that your policy must include to make sure in the event of a disability, your benefit is paid properly, and you are protected in the way you deserve.

What is The Most Important Feature?

Own Occupation Rider

This rider can be classified by several different names including True Own Occupation Rider, Regular Occupation, or Own Occupation.
Own Occupation means that you are considered to be disabled and eligible for your benefit if you cannot perform the duties of your specific job. If you have a broader definition of disability, such as Social Security Disability, to receive your benefit you would have to be disabled to the point you cannot perform any job whatsoever. This is a crucial difference as you may not be able to perform clinical dentistry because of your disability, but you can receive the monthly benefit from your policy as well as performing another line of work, in most cases actually working as a professor at a dental school or residency!

Won’t my benefit become less valuable over time due to inflation?

Cost of Living Adjustment Rider (COLA)

The COLA rider is a guard against inflation to protect your buying power while receiving your benefit. While on disability, your benefit will increase annually by 3% to ensure your benefit does not lose value due to inflation over the period that you are on claim.

What if I am not fully disabled but still suffer losses from a long-term injury?

Partial Disability

Partial disability benefits pay out when you lose 15% of income, time, or duties due to a disabling event. For example, a dental professional hurts their hand and is only able to work 4 days a week instead of 5. This would be a 20% loss of income, time, and duties and would result in a 20% partial disability payout in proportion to your current disability benefit.

The difference between policies is in how partial disability is calculated. In calculating your pre-disability income, carriers will refer to what is called a lookback period. A lookback period is the number of years that a carrier will take into account previous earned income to decide the amount of disability benefit given in relation to your total monthly benefit at the time of disability.

Some carriers will offer longer lookback periods and take the average of the best two years of earnings. Other carriers offering disability may have shorter lookback periods offering less forgiveness to years with lower earnings.

These are the key elements in a disability policy for dental professionals to be aware of when purchasing a policy or evaluating an existing one. There are however different supplemental benefits that the carriers offer with their policies to differentiate themselves.

For more information on the key features to look for in a disability policy or the supplemental benefits offered by carriers, contact a CFS Agent, we’re here to help!

Written by: Neal Cudahy

Why Personal Life Insurance Gives Power Back To You!

Mon, 09 Feb 2026 20:14:53 GMT

Why Personal Life Insurance Gives Power Back To You!

Dentistry is a high-income, highly skilled profession that positions individuals for long-term success. During dental school and residency, speakers often emphasize the importance of practice management and financial management as central pillars of a successful career. However, one of the more challenging conversations involves personal life insurance. Proper planning in this area allows dentists to protect themselves enabling them to focus on what they do best — caring for patients.

Life insurance is a risk management tool, not just a formality. By understanding its mechanisms and protective benefits, individuals can harness life insurance as a valuable asset that supports them throughout various phases of their career.

Compared to many other professionals, dentists typically enter the workforce with significant student loan debt, often ranging from $100,000 to $600,000 or more. After graduation, additional financial responsibilities can follow quickly, including purchasing a home or acquiring a dental practice. Carrying such a heavy debt load early on can make dentists, and their families, more vulnerable to financial strain if unexpected events occur and proper planning is not in place. Dentists can secure life insurance early in their career and use it as a protective tool if circumstances do not go as planned.

NOT ONE-SIZE-FITS-ALL

Life insurance is not one-size-fits-all, especially for dentists whose financial responsibilities tend to grow rapidly. The two of the most common types of life insurance are Term Life and Whole Life, and each serves a different purpose within a dentist’s overall financial plan.

TERM LIFE INSURANCE

Term life insurance provides coverage for a specific period of time, commonly 10, 15, 20, or 30 years. If the insured passes away during that term, the policy pays a death benefit to the beneficiaries. Term life insurance is often the most cost-effective way to obtain a large amount of coverage, making it especially valuable during high-liability years. It can help protect a spouse or family while student loans, a mortgage, or practice debt are still outstanding. Term life insurance ensures loved ones are not burdened with debt or forced to make significant lifestyle changes should the unexpected happen. Some Term policies are also convertible, allowing dentists to convert term coverage into whole life insurance later without additional medical underwriting—an attractive option for future practice owners who may want access to cash value in the future.

WHOLE LIFE INSURANCE

Whole life insurance, on the other hand, provides lifelong coverage. In addition to a guaranteed death benefit, Whole life policies build cash value over time. This cash value grows on a tax-advantaged basis and can be accessed during the insured’s lifetime through policy loans or withdrawals. For dentists with stable income and long-term planning goals, Whole life insurance can serve as both a protection and a cash accumulation tool supporting legacy planning, future expenses, or conservative diversification alongside traditional investments.

LIFE INSURANCE WORKS FOR YOU

The most effective strategy is not choosing one option over the other but understanding how each fits into different stages of life. Discussing life insurance can often feel uneasy because it requires contemplating potential future situations that no one wants to imagine. However, life insurance ultimately empowers dentists to pursue their goals confidently, knowing their loved ones and financial obligations will be protected.

Written by: Julia Breneman

How Your Health and Lifestyle Affect Your Life Insurance Application

Tue, 03 Feb 2026 03:10:56 GMT

How Your Health and Lifestyle Affect Your Life Insurance Application

When applying for life insurance, many people believe that age is the most important factor in determining their premium. While age does play a role, your health and lifestyle habits often have an even greater impact on your eligibility, coverage options, and overall cost.

Life insurance carriers evaluate risk carefully. Understanding what factors they review can help you prepare for the application process and make more informed decisions.

Health History and Medical Conditions

One of the first things an insurance carrier evaluates is your overall health and medical history. This includes both current conditions and past diagnoses.

Carriers commonly review chronic conditions, blood pressure and cholesterol levels, height and weight, prior surgeries or hospitalizations, and family medical history. Having a health condition does not automatically disqualify you from coverage. In many cases, well-managed and well-documented conditions are viewed more favorably than untreated or inconsistent care.

Tobacco and Nicotine Use

Tobacco use is one of the most significant factors affecting life insurance premiums. This includes cigarettes, cigars, chewing tobacco, vaping, and other nicotine products.

Applicants who use nicotine typically pay higher premiums due to increased health risks. However, many carriers will offer non-smoker rates after a period of nicotine-free use. Proper timing and disclosure can make a substantial difference in cost.

Lifestyle and Dangerous Activities

Insurance carriers also consider how you spend your time outside of work. Certain hobbies and activities are considered higher risk and may affect pricing or coverage terms.

Examples include skydiving, scuba diving, rock climbing, racing, and private or recreational aviation. Participation alone does not necessarily result in higher premiums. Frequency, training, certifications, and safety precautions all play an important role in underwriting decisions.

Driving Record and Legal History

Many applicants are surprised to learn that their driving record can impact life insurance premiums. Carriers may review DUI or DWI convictions, reckless driving citations, multiple moving violations, and license suspensions.

A clean driving record reflects responsible behavior, while recent or repeated violations may raise concerns. Serious criminal history may also affect eligibility depending on severity and timing.

Alcohol and Substance Use

Moderate alcohol consumption is generally acceptable. However, excessive use or a history of substance abuse can significantly impact underwriting decisions. Applicants may be asked about alcohol intake, prior treatment or rehabilitation, and prescription medication usage. Accuracy and transparency are critical during this portion of the application.

The Advantage of Working With a Brokerage

As an insurance brokerage, we are not tied to one carrier. This allows us to evaluate multiple companies and identify the carrier that best suits your health profile, lifestyle habits, and long-term goals. Different carriers view risk differently, and our role is to advocate on your behalf and match you with the most appropriate option available.

The Bottom Line

Life insurance underwriting is about accuracy, not perfection. An informed applicant is a stronger applicant. Understanding how your health and lifestyle affect your application allows you to plan ahead and avoid unnecessary surprises.

Choosing the right policy and carrier is an important decision. By working with a brokerage that understands both insurance and your profession, you can feel confident knowing your coverage is tailored to you and will be there when it matters most.

Written by: Reghan Handley

Dental School Debt, Rewritten: What the OBBB Act Means for Future Dentists

Tue, 27 Jan 2026 16:02:21 GMT

Check out this article written by our Dental Board Member - Dr. Beatrice Williams

Dental School Debt Rewritten: What the OBBB Act means for Future Dentists

It’s no secret that the cost of dental education has reached a breaking point. Today, nearly 78% of dental school graduates begin their careers carrying more than $312,000 in student loan debt , a financial burden that can shape career decisions long before the first patient is seen(1).

As changes to federal student loan policy loom, students considering a dental career must un derstand not only how we arrived here—but how to prepare for what’s coming next.

Why Dental Education Comes With a High Price Tag

Becoming a dentist requires a minimum of eight years of postsecondary education , often followed by additional training. Unlike medical residents, however, most dental and orthodontic residents do not receive a salary or stipend during training. Instead, many continue paying tuition while interest accrues immediately on borrowed funds.

As a result, federal loans have become the backbone of dental education financing:

Approximately 85% of dental students rely on Direct Loans (1)

Nearly 80% of those students also use Grad PLUS loans to cover costs beyond Direct Loan limits (1)

Until now, these federal options provided flexibility, borrower protections, and access to income-driven repayment plans—features not typically available in private lending (2).

What the OBBB Act Changes for Dental Students

Beginning July 1, 2026 , provisions of the One Big Beautiful Bill (OBBB) Act will significantly reshape how graduate education is financed (3).

Key changes include:

Direct Unsubsidized Loan limits capped at $50,000 per year , with a $200,000 lifetime maximum

Elimination of the Grad PLUS loan program entirely

For dental students, whose cost of attendance often far exceeds these limits, this creates a substantial funding gap.

The Shift Toward Private Lending

With federal options restricted, many students will be pushed toward private or commercial loans to bridge the difference. These loans often:

Carry higher interest rates

Require stronger credit profiles or co-signers

Lack federal borrower protections such as income-driven repayment, deferment, or forgiveness options

This shift places greater importance on something students don’t often think about early enough: creditworthiness.

Why Creditworthiness Will Matter More for Dental Students

Creditworthiness affects far more than student loans—and in a post–Grad PLUS environment, it may determine whether private financing is available at all . As federal lending options narrow, lenders will place greater emphasis on an applicant’s credit profile when evaluating risk.

A strong credit history can influence:

Interest rates: Higher credit scores often qualify borrowers for lower interest rates, which can translate into tens of thousands of dollars in savings over the life of a loan.

Loan approval and terms: Lenders review credit history to determine not only whether a borrower is approved, but also the structure of the loan—including required co-signers and repayment terms.

Housing opportunities: Many landlords assess credit scores during tenant screening, and lower scores may result in higher security deposits or limited rental options.

The good news? Several of the most important factors that contribute to creditworthiness are within your control—and building them early can significantly improve your financial flexibility during and after dental school.

Practical Ways Students Can Build Credit Now

Even during school, small habits can make a meaningful difference:

Pay every bill on time

Payment history is the single most important factor in your credit score. Automate payments whenever possible.

Keep credit utilization low

Aim to use less than 30% of your available credit limit on credit cards.

Limit new credit applications

Each hard inquiry can temporarily lower your score—only apply when necessary.

Keep older accounts open

Length of credit history matters. Even unused accounts can help your score if kept in good standing.

Review and dispute errors

Regularly check your credit report and challenge inaccuracies that could unfairly drag your score down.

Preparing for Dental School in a Changing Student Loan Landscape

Being mindful of when you apply to dental school—and how you prepare financially beforehand—has never been more important. Establishing strong credit habits early won’t just help you adapt to upcoming loan changes; it can also reduce borrowing costs and improve financial flexibility long after graduation.

In a shifting lending landscape, preparation is power.

References

Istrate EC, Samanta A, Booker CL, West KP. Dentists of Tomorrow 2024: An Analysis of the Results from the ADEA 2024 Survey of U.S. Dental School Seniors. ADEA Education Research Series, Issue 7, December 2024.
U.S. Department of Education, “Federal vs. Private Loans,” FederalStudentAid, https://studentaid.gov/understand-aid/types/loans/federal-vs-private (Accessed August 20, 2025.)
Sec. 81001, One Big Beautiful Bill Act (Pub. L. 119-21)
Stripe. How to Determine Creditworthiness and Build Your Credit

Written by: Dr. Beatrice Williams

Why Choosing a Highly Rated Insurance Carrier Matters

Mon, 26 Jan 2026 21:59:02 GMT

Why Choosing a Highly Rated Insurance Carrier Matters

The Importance of Choosing a Highly Rated Carrier

When choosing an insurance carrier for your policy, you may only be worried about what your monthly premium will be. So, you will more than likely pick the cheapest option. While it may be tempting to save a few dollars, picking a low rated insurance carrier may cost you in the long run.

Evaluating a Carrier's Financial Stability

When looking into a carrier, the first item to look at is their Financial Credit Score. This is similar to your own credit score, as it indicates if a carrier is financially healthy. You may be asking, why would I care? A low rated carrier may not be able to pay a claim or may delay payment for a claim due to their poor finances.

When buying insurance, you are placing trust in a company for when you will be at a loss. The purpose of insurance is to transfer risk, and that transfer of risk only works if both ends of the relationship can uphold their promise. If you were to pick a highly rated carrier rather than the cheaper option, you can live without the fear of not being covered if you were to make a claim.

Understanding the Value of a Highly Rated Carrier

Beyond financial stability, highly rated carriers usually demonstrate reliability in every aspect of their business. A high rating not only comes from a great financial history, but also claim-handling performance, customer satisfaction, and the ability to perform during a disaster. Achieving this status also means that your premium is less likely to increase and will more than likely stay stable. In essence, a higher rating shows that your insurance carrier will survive a recession/financial hardship and is virtually too big to fail.

The Bottom Line

At the end of the day, choosing a policy is ultimately your choice. An informed decision is the best decision. An informed decision will secure dependable protection for yourself, your family, and your assets. A cheaper carrier may be enticing at first glance, but fear of an insolvent insurer, unreliable claims practices, and an inability to survive financial hardship far outweigh saving a quick buck. By selecting a carrier with proven financial strength, you are ensuring that your coverage will be there when you need it most. In a world full of uncertainty, the peace of mind that comes from partnering with a trusted, highly rated carrier is truly invaluable.

Written by: Nate Young

The Top Three Concerns Dental Associates Have About Private Practice Ownership

Fri, 23 Jan 2026 18:55:51 GMT

Check out this article from our partners at Bank Of America

Life Insurance: The Backup Plan You Hope You Never Need

Wed, 21 Jan 2026 16:20:26 GMT

Life Insurance: The Backup Plan You Hope You Never Need

The thought of dying isn’t the most enjoyable subject but it’s something every person needs to prepare for. If your family, business, or any other dependents rely on your income, then life insurance is the easy solution to any financial burden you may leave behind. In its simplest form, term life insurance requires you to pay a set premium for a certain length (term) that you want to be covered, and if you die during that time, the insurance company pays your beneficiaries a tax-free lump sum. Below are some common myths about life insurance:

Myth #1: Young People Don’t Need Life Insurance

It’s human nature to procrastinate, especially when it comes to planning out your future but applying for life insurance when you’re young and healthy will lock in the cost-effective rates and insurability. There is no timeline for a person’s major life events, so it’s better to be prepared before it’s too late

Myth #2: Life Insurance is only for people with kids

Even if you’re single, you still want to make sure you have enough assets to cover any debts, expenses, or bills that you could leave behind. Married couples without kids should both have life insurance to cover loans, mortgages, and any potential lost income. Stay-at-home parents are often overlooked but the economic value of their childcare and household responsibilities need to be accounted for. Business owners who are succession planning or need to protect a key employee also benefit from term life insurance

Myth #3: My job offers coverage; I don’t need it

While employer paid life insurance has benefits, it usually doesn’t offer enough benefit to adequately cover you, has limited flexibility, and may not come with you if you leave your job.

Myth #4: The application process will take too long; I don’t want to do an exam

Insurance companies have streamlined the process of quoting, applying, and approving life insurance. Advancements in technology have provided insurers with various scans, checks, and questionnaires to determine a person’s eligibility without needing a medical exam or a deep dive into medical records if healthy.

Myth #5: Companies won’t pay and if they do, it will be a huge tax burden

You may hear horror stories, but the vast majority of life insurance claims pay out without a problem if the premiums have been paid and the representations made during the application process were accurate. Life insurance pay outs come tax free to beneficiaries.

You can’t control what happens in the future so it’s best to plan today to protect the people you love. Life insurance is a step to make that happen

Written by: Jeremy Alfano

1099 vs. W2 for Dental Professionals: What No One Really Explains

Tue, 13 Jan 2026 17:08:46 GMT

1099 vs. W2 for Dental Professionals: What No One Really Explains

Understanding the Real Difference Between 1099 and W-2 Dentistry

When you are a dentist, associate, or specialist and are trying to make the decision on whether to work as a 1099 or W2, you have likely heard the same old worn-out arguments: 1099 is better for write-offs, or W2 is better for benefits. Both are technically true, yet neither of them tell the whole story. It is not only the difference between the two in terms of taxes, but also the way you prefer to live and work every day.

The Predictability and Simplicity of Being a W-2 Dentist

Being a W2, life is a little more predictable. There are automatic withholding taxes, you receive standard benefits such as health insurance, malpractice, possibly a 401(k), and some CE or PTO. It is predictable, well-organized, and simple to manage. This arrangement is attractive to most associates, especially at the beginning of their careers. You are able to concentrate on mastering your dentistry skills and do not have to concern yourself with quarterly tax and business deductions; you can do your taxes simply through an online software. It is the plug-and-play version of your career: you come in, work hard, and leave. The downside here is that you sacrifice a certain degree of control; you can't write off costs as easily, your schedule may be predetermined, and your income potential is limited unless production-based bonuses are high. However, the peace of mind and ease are worth it to many.

The Flexibility and Responsibility of a 1099 Arrangement

Now, when you take a 1099 offer, that is a whole different game. You are not merely a dentist; you are a small business. You are more flexible and have more opportunities to design your income the way you want. CE courses, scrubs, supplies, travel, and part of your home office can be written off. If you are a car person (like me), you can take advantage of Section 179 of the tax code and be able to write off a business deduction for a vehicle over 6,000 pounds, think Bentley Bentayga and Mercedes G-Wagon. You choose the way you spend your money and construct your way of life. However, this comes with the responsibility, quarterly tax payments, and spending money to get a qualified CPA, instead of possibly doing your taxes through a low-cost version of TurboTax if you were W-2. Some love it, some don't.

Choosing the Structure That Best Suits Your Life and Goals

No universal solution fits all, and that is what people jump over. The final determination lies in the fact that you know what arrangement will suit your goals and life. The point is understanding what you are really getting yourself into before signing a contract.

Written by: Vinny Grasso

Advancements in Disability and Life Insurance Underwriting Since the Turn of the Millennia

Thu, 08 Jan 2026 00:24:13 GMT

Advancements in Disability and Life Insurance Underwriting Since the Turn of the Millennia

What is Life and Disability Insurance Underwriting?

There are two components used in underwriting Life and Disability insurance

Medical Underwriting: is used to identify risk in a person’s health history and lifestyle when applying for an insurance policy.

Financial Underwriting: is used to evaluate an applicant’s financial situation, income, assets, and debts for the same purpose as Medical Underwriting.

In this article we will look at changes made to these processes since entering the 21st century.

What has changed in the last 26 years?

Accelerated and Simplified: The largest change one may notice is the increased efficiency in which a policy may be issued. Insurers removing the need for physical medical exams, blood tests, and extensive attending physician statements for many applicants has greatly helped in speeding up the issue of policies.

Use of Data Resources: Underwriters have a much larger pool of data to draw from than in years past. More obvious sources include MIB (Medical Information Bureau), motor vehicle reports (MVR), prescription histories, and credit scores. Lesser-known sources for data collection may include use of data from wearable devices, health apps, and public records (given consent from the consumer). These can be invaluable resources when assessing risk.

AI: Artificial Intelligence is capable of automating data collection, performing predictive risk modeling, identifying patterns, and making instant decisions for simple cases. These tools allow human underwriters the time and energy to focus on complex cases. Advancements like these in underwriting cannot be understated in their usefulness.

Personalization: In the effort to make the experience more comfortable for customers, there has been a shift towards digital applications, tele-underwriting (remote interviews), and virtual medical exams. This personalization extends to pricing, with some models offering dynamic premiums based on real-time data and health behaviors.

The ease provided by these developments in not only technology, but also in information processing have been crucial to the underwriting landscape as we currently know it. While the previous advancements have been on the side of the underwriters, the following reflect more on the societal and regulatory changes that have occurred in the timeframe we are discussing.

Privacy: With the new data collection resources underwriters have access to, concerns regarding privacy have been rightly raised. Insurers are now more scrutinized on the transparency of how data is collected and used in regards to building customer trust and regulation compliance.

Mental Health: With disability policies, we’ve seen insurers pivot towards more often offering coverage for mental health condition spurred on by societal views and demands as understanding around mental wellness expands.

We can see that through these advances in underwriting that insurers, who can appear to be flippant in their requirements for coverage, have been hard at work refining their methods to better fit the needs of the now. In the insurance industry, often considered slow-changing for several reasons including some companies reliance on antiquated systems; high levels of regulation on the state and federal level; risk aversion creating a cautious environment that does not handle quick changes well; and a cyclical presence in the market more easily handled by having a reactive approach opposed to proactive, it is plain as day that the industry is capable of growing and adapting to this ever-evolving world.

Written by: Jerold Dougherty

Dental Malpractice Claims: Why Higher Liability Limits Are Not the Solution

Mon, 29 Dec 2025 22:24:46 GMT

Dental Malpractice Claims: Why Higher Liability Limits Are Not the Solution

CASE STUDY FOR DENTAL PROFESSIONALS

A Data-Driven Analysis for General Dentists, Specialists, and Practice Owners

Executive Summary:

Dentists are often encouraged to purchase the highest malpractice limits available under the assumption that larger limits equal stronger protection. But current data shows a different story: typical dental malpractice payouts are relatively low, lawsuit frequency is modest, and nearly all claims fall well within standard $1M policy limits.

This case study compiles national and state-level data (including New Jersey, one of the more litigated dental states) to demonstrate why raising malpractice limits provides diminishing returns, and why dentists are better served by focusing on documentation, patient communication, and risk management, not simply larger insurance limits.

1. Understanding the Real Risk: Dental Malpractice Frequency

1.1 National Frequency

Compared with physicians, dentists face significantly fewer claims:

Dentistry accounts for ~11% of all national malpractice payments (NPDB-derived).
Across all dental professionals, the absolute number of paid claims is low relative to provider count.
Many claims filed never result in payment or trial, meaning actual exposure is far lower than raw lawsuit counts.

1.2 New Jersey Frequency (Example State)

New Jersey provides a useful model because of its active legal climate.

Only 2–3 out of every 100 dentists are sued each year.
Meaning 97–98% of NJ dentists face no malpractice lawsuits annually.
Most NJ dentists go years—often entire careers—without a paid claim.

2. Severity of Claims: How Much Do Dental Lawsuits Actually Cost?

2.1 National Payout Severity

Across the U.S., dental payouts remain low compared to medical specialties such as OB-GYN or surgery.

National average payout: ~$79,000
Other aggregated NPDB analyses show a range of $81,000 to $128,000 depending on year and methodology.

These amounts sit far below typical policy limits.

2.2 New Jersey Severity

Even in a high-litigation state:

Low-end payouts: ~$100,000
High-end payouts: ~$400,000
Most claims resolve under $300,000

While rare catastrophic cases do exist, they are statistical anomalies.

Outlier Example

Largest dental malpractice payout in NJ history: $11,000,000
One case in decades
Represents <0.01% of all outcomes
Not predictive of general practice risk

2.3 What This Means for Dentists

A standard $1M per-claim limit already provides:

12× national average payout
2.5–10× typical NJ payout
Full protection in 99.9% of all dental cases

Increasing limits beyond $1M rarely provides tangible added value.

3. Why Higher Limits Usually Don’t Reduce Risk

Dental professionals often believe that higher limits deter lawsuits or produce better outcomes. Research and insurer data show the opposite.

3.1 Plaintiffs Don’t Sue Based on Policy Limits

Claims are filed based on injury and perceived negligence, not the defendant’s insurance amount.

3.2 Higher Limits Can Encourage Higher Settlements

This is known as the Insurance Visibility Effect:

Attorneys pursue higher settlements when they know more insurance is available.
Larger limits increase negotiation pressure.
High-limit policies can become attractive targets.

3.3 Defense Quality Matters More Than Limit Size

What wins a claim is:

Documentation
Expert witnesses
Informed consent
Chart clarity
Timely referral
Strong representation

Higher limits do nothing to improve these factors.

3.4 Most Claims Never Reach Policy Limits

The data shows extremely few claims ever approach $1M.

3.5 Higher Limits Increase Premiums Without Increasing Protection

Insurers typically charge:

10–25% more for moderate limit increases
Up to 40–60% more for large jumps

The cost-benefit ratio is poor for most dentists.

4. Where Claims Actually Come From

Most dental malpractice claims arise from predictable clinical and communication issues—not lack of insurance.

Most common causes include:

Improper extractions
Nerve injuries (IAN or lingual nerve)
Endodontic complications
Lack of informed consent
Failure to diagnose periodontal disease or pathology
Poor documentation
Delay in referral
Implant placement complications
Postoperative infection or follow-up issues

These risks cannot be solved by higher limits—only by better systems, documentation, and communication.

Interesting footnote: Number of Dental Negligence claims has been on a steady decline from 1991 to 2025. 2025 has seen the lowest payout total for dental negligence in over 20 years.

5. When Higher Limits Do Make Sense

Although most dentists don’t benefit from high-limit policies, certain practice types may justify them:

Oral and maxillofacial surgeons
High-volume implant centers
IV sedation practices
Full-arch reconstruction practices
Practices in heavy-litigation metro areas
Dentists with significant personal assets (wealth protection)
Group practices with brand visibility

Even in these cases, increasing limits should be weighed against:

Local jury tendencies
Procedural risk profile
Existing umbrella or corporate protection
Whether increased premiums create undue cost for limited benefit

6. Practical Recommendations for Dentists

6.1 Choose Limits Based on Real Data, Not Fear

For most general dentists, $1M/$3M or $2M/$4M is more than sufficient.

6.2 Invest in Risk Management Instead of Higher Limits

High-impact areas:

Detailed informed consent
Radiograph documentation
Diagnostic clarity
Clear treatment notes
Patient follow-up
Early involvement of specialists
Professional communication
Maintaining policies and protocol

These reduce both lawsuits and payouts far more effectively than raising insurance limits.

Speaking with your insurance agent and understanding what risk management solutions your malpractice insurance company may offer can be very beneficial. Associations may include valuable risk management, CE courses or advanced learning to better understand risks.

6.3 Review Limits Only if Your Practice Changes

Increase limits only when your scope changes (implants, sedation, surgery, etc.).

6.4 Maintain High-Quality Defense Coverage

Ensure your insurer provides:

Dental-specific defense attorneys
24/7 risk hotline
Peer review panel
Documentation audit tools
Early intervention support

7. Conclusion

Data from both national sources and state-level trends confirms what many risk analysts already know:

Dental malpractice severity is low. Frequency is manageable. And higher policy limits do not meaningfully reduce risk for most dental professionals.

For the vast majority of general dentists and many specialists, standard malpractice limits already provide ample protection.

The real key to reducing malpractice exposure is:

Strong documentation
Clear communication
Proper patient management
Clinical excellence
Timely referral
Preventive risk protocols

Insurance should remain a safety net—not the primary risk strategy.

Better practice beats bigger limits.

Written by: Jon Christy

Never Wait Until The Last Minute To Make Sure Your Practice Is Protected

Tue, 23 Dec 2025 00:05:26 GMT

Never Wait Until The Last Minute To Make Sure Your Practice Is Protected

When buying a dental practice, the last thing you probably think about after looking over your lease and your conditions letter from the bank are all the insurances they require. They look as easy to attain as your car insurance, just one 30-minute call to the first insurance company that comes up and you’re done! Unfortunately, that isn’t the case for something as overarching as a Business Owner’s Policy. There are many different pieces of information that you probably do not know about that may affect your ability to get the best rates, along with knowing how easy it is to get insurance depending on where you are in the country.

Even if you are leasing a practice, when it comes to getting your Business Owner’s Policy, the insurance companies will always ask questions about the building you are going to be in. That includes information like:

How old the building is

When the last time the electric, roof, plumbing, HVAC was updated

What material is the building made out of, etc

Now you may ask yourself, “if I am not owning the building, why would I have to know that?”. When it comes to insurance companies and so called “rating information” those are the most important questions they ask, as it helps build your risk profile for how much the insurance company is going to charge for the policy. For example, a building with a wooden frame is going to be much more susceptible to fire damage than a building built out of concrete and metal, and therefore all the office equipment and belongings have a higher risk of getting destroyed in the event of an incident. This also means that without a lot of that information, you may not be able to receive a quote from any insurance company and therefore won’t be able to send your bank or landlord the required documents to close on your loan.

Although, the most important reason to not wait until the last minute when looking for your practice insurance is to make sure you are able to easily get the insurance in the first place. Many do not know that in reality, in many areas in the United States nowadays it is getting very difficult to purchase a building as well as business personal property insurance because of events such as hurricanes, tornados, hail, flooding, and even wildfire. States such as Florida, Louisiana, Texas, and even California are getting more and more difficult, and therefore more expensive, for insurance companies to operate and provide good policies that will cover what you want them to cover. And to make sure your, in some cases, multi-million-dollar investment is safe if a big storm or other event comes their way.

With that, if you are in a state that gets a lot of bad weather or has wildfires, it will take time for insurance companies to underwrite your project or practice and send out a quote. Even then it may take longer to provide a quote to you, as many insurance companies are now providing policies but without coverage for wind or wildfire. So, it may take some back and forth or even searching longer to find an insurance company that is willing to provide you with a good policy at a decent price that you’ll be happy to take, instead of just taking it because it is your only option.

At the end of the day, it is always best to know as much about the space you will be practicing in and to always get a jump on your business insurances, as their job is to protect you on your worst day as a business owner. That way if that day comes, you know what you have and know that you are well protected to face it. This ensures that your business can get back on its feet as quickly as possible and you can continue to take care of your patients with whatever they may need.

Written By: TJ Stanton

Securing Your Future: Understanding the Underwriting Process for Disability and Life Insurance in Dentistry

Mon, 15 Dec 2025 22:39:10 GMT

Securing Your Future: Understanding the Underwriting Process for Disability and Life Insurance in Dentistry

In the dental profession, securing access to disability and life insurance is crucial for protecting one’s financial future and ensuring continuity of care for patients. However, many dentists may not fully understand the underwriting process and its implications on their insurance policies. This article aims to demystify the underwriting process for disability and life insurance, offering insights tailored specifically for dental professionals.

Underwriting is the process through which insurers evaluate the risk of insuring individuals and then determine the terms and premiums associated with their policies. For dentists, the underwriting process involves several critical steps, including medical assessments and occupational considerations.

During underwriting, insurers will require a comprehensive medical history, including details of any past medical conditions, current health status, and lifestyle choices. Dentists, given the nature of their work, may have unique health considerations, such as musculoskeletal disorders from repetitive motions, which can influence the underwriting decision. Underwriters often require a medical exam, lab tests, and sometimes, medical records from primary care physicians. Understanding how to present this information transparently can aid in a smoother underwriting process.

The nature of a dentist's work can significantly influence underwriting outcomes. Insurers may classify dental professionals as having a moderate-risk occupation due to factors such as the physical demands of the job and potential exposure to health risks, including infectious diseases. When applying for disability insurance, dentists should highlight factors that demonstrate the resilience of their practice, such as their continued patient base and business continuity plans in case of temporary incapacity.

To streamline the underwriting process, dentists can take several proactive steps:

Choose the Right Insurer: Each insurance company has distinct underwriting criteria and approaches. Dentists should compare policies from multiple providers to find one that best understands their profession and offers competitive rates.

Gather Necessary Documentation: Preparing a comprehensive set of medical records can significantly hasten the underwriting process. Dentists should compile their medical history to support their application.

Work with Specialized Agents like CFS: Collaborating with an insurance agent experienced in dental insurance can provide valuable insights. Such agents can guide dentists through complex paperwork and help present their profiles effectively to underwriters.

Be Honest and Transparent: Misrepresentation or incomplete information can lead to policy denials or unexpected exclusions down the line. Honest communication with insurers can foster a more favorable outcome during the underwriting process.

The underwriting process for disability and life insurance can be daunting for dentists, but understanding it is essential for securing appropriate coverage. By being aware of the key considerations—medical assessments and occupational risks—dentists can navigate this process more confidently. With thorough preparation and the right guidance, dental professionals can protect their practice, their families, and their futures from unforeseen events.

This proactive approach not only enhances personal financial security but also ensures that they can continue to provide high-quality care to their patients, regardless of the circumstances.

Written by: Michael Magargee

What Is Insurance?

Tue, 09 Dec 2025 01:16:36 GMT

What is insurance, really? And how should I manage my coverage?

Let’s take a big step back for a moment and look at the question: what is insurance?

For many dentists, insurance is an obligation, because doctors are required by law to carry malpractice coverage. Or they are required by a lender to carry business owner’s coverage to satisfy a loan agreement. For others, insurance is a frustration in their life because they are stymied by the policy language or they worry they may not understand how the policy can (or cannot) respond to potential risks.

In reality, insurance is a product. And that product is a cash reserve in case of an emergency . You accept a manageable expense now in order to avoid being overwhelmed by a catastrophic expense later.

As with any product you purchase (a cell phone, an automobile, etc.), insurance will best serve your needs if you:

buy it intentionally,

use it intentionally, and

understand how it works

If insurance is a product, then the policy itself is the contract.

A contract is a written agreement between two parties. In the case of an insurance policy, that agreement is between the dentist (or dental practice owner) and the insurance company. The policy specifies the potential risks it can, and cannot, respond to. This is why you should be intentional when you purchase coverage.

For example, a Business Owner’s Policy (BOP) cannot cover a workspace that is vacant or under construction. It is specifically designed to cover the risks inherent to operating a functioning dental practice. For periods of construction, you would need different coverage: Builder’s Risk and General Liability Under Renovation. [For more information about this, see my teammate Nick Cepparulo’s article “ The Building Blocks to Insuring Your Start-Up ”.]

On the other hand, a BOP can provide coverage for the risks that arise when an employee operates their own car in the service of your business, so long as your BOP includes Hired and Non-Owned Auto coverage.

A dental malpractice policy can cover you if you have an incident with a patient during treatment that turns into a claim or a lawsuit. But it cannot cover an incident where a patient slips on your carpet in the waiting room—for that you need the General Liability coverage found inside the Business Owner’s Policy (BOP).

Fine. How should I manage my insurance coverage?

As an Account Executive at CFS Dental Division , I want my clients to feel confident that they understand their coverage. It is easy for any dentist to treat insurance as an afterthought, given the demands of clinical work and the time and effort it takes to run a business. But, if a catastrophe does occur, your experience will be less stressful if you understand the basics in advance.

Here is what I recommend:

Step 1: Read your policy. Your insurance policy will lay out precisely what it covers, and how it is designed to respond to risks. Although policies can be long and the language can be complex, you may find you understand more than you expect to. Reading the policy is also vital because it is a contract and, when you sign it, you agree to its provisions. And for items that need further clarification, you can always . . .

Step 2: Ask your agent questions. Your agent’s job is to analyze your needs and find the best insurance product to address them. Before you purchase a new policy, provide as much specific information as possible to your agent. Then, ask your agent lots of questions about what they recommend and why. Your agent wants to do everything they can to ensure you do not experience gaps in coverage, but this takes a lot of examination and analysis because they are trying to project into the future to predict what disasters might befall your practice. By asking your agent questions, you will both build confidence that the insurance products are the correct ones.

Step 3: Send your agent updates when you make any change to your practice or your office, no matter how small they may seem. When you choose an insurance policy and make that first payment you are accepting responsibility to manage your coverage going forward. As your practice grows and develops, your insurance needs will change, and your coverage must be updated to adapt accordingly. Adding or subtracting certain dental procedures will impact your malpractice coverage as well as your premium. As will making significant changes to your number of clinical hours per week or adding a new practice location. Purchasing a new piece of equipment or expanding your office space could leave you under-covered if you do not notify your agent. Even neglecting to advise your agent that your mailing address has changed could lead you to miss a premium payment and cause your policy to lapse. Your agent wants to hear from you. They want to help you maintain appropriate coverage.

This is the information I wish every one of my clients understood. Now that you know, make sure to share it with your colleagues. They will thank you, and so will their insurance agent!

Written by: Eric Harper

Employment Practices Liability Insurance (EPLI): Why "Later" is Too Late.

Mon, 01 Dec 2025 17:40:18 GMT

Employment Practices Liability Insurance (EPLI): Why "Later" is Too Late.

Let’s Talk About Employment Practices Liability Insurance (EPLI).

Picture this: It’s your favorite time of year. The sun is shining, your practice is thriving, and you’re preparing for a well-earned vacation next week. Are you thinking, “Today is the perfect day to plan for discrimination allegations”?

Probably not.

As a dental practice owner, you’re constantly juggling responsibilities. You are practicing Dentistry and running a business!  You are shaping a practice where patients and employees can thrive, while managing appointments, budgets, equipment updates, and staff concerns. The last thing you want on your mind is a disgruntled employee or a patient threatening legal action.

“Not today,” you think.

“I’ll deal with that later.”

But in the world of risk management, later can be a dangerous gamble.

When Is the Best Time to Get EPLI Coverage?

Something I learned early in risk management is that the worst time to buy fire insurance is when your house is already on fire. Similarly, the worst time to figure out your strategy for  employment practice-related lawsuits  is when a disgruntled employee storms out of your office, or worse, you've just been served with legal papers!

As a wise man once said, “An ounce of prevention is worth a pound of cure.” But what does prevention look like when it comes to discrimination or harassment allegations in a busy dental office?

It starts with recognizing how vulnerable any practice can be.

Where Do EPLI Lawsuits Come From?

Many dentists assume a lawsuit requires solid proof of real harm. Sometimes that is true. For example, defamation and malpractice cases often demand clear evidence. Even the burden of proving bodily injury and property claims starts with the plaintiff.

Employment practice claims are different. Allegations that cost tens of thousands of dollars to dispute can be exaggerated or even completely false. These allegations can come in the form of a lawsuit, an EEOC complaint or a number of other regulatory actions. And the craziest part? These claims don’t come from employees only; they can arise from patients as well.

Here are a few examples of common claim triggers:

Patient Allegations (Third-Party)

If a patient alleges you refused treatment because of race, religion, gender identity, or another characteristic, the burden of proof often shifts to you. You must prove that the allegation is not true.

Employee Allegations (First-Party)

If an employee claims they were fired because of age, gender, disability, or a hostile work environment, you must provide strong evidence that your decisions were based on legitimate business reasons.

In these cases, the truth alone is not enough. You need documentation, legal representation, and time, which all come with financial and reputational costs.

What Can EPLI Coverage Do for My Dental Practice?

This is where  Employment Practices Liability Insurance (EPLI)  becomes not just an option, but a non-negotiable safeguard for your  dental practice.

EPLI isn't a luxury; it's the only type of  business insurance for dentists  specifically designed to protect your practice against the devastating financial fallout of:

Discrimination Allegations:  Claims based on race, gender, age, religion, disability, national origin, sexual orientation, and more.

Workplace Harassment Allegations:  Claims of harassment, bullying, or creating a hostile work environment.

Wrongful Termination:  Allegations of unfair or illegal firing.

Failure to Address Complaints:  Claims that management ignored or mishandled reports of misconduct.

Retaliation:  Employees claiming adverse action after reporting issues (e.g., patient safety concerns, workplace misconduct).

Wage and Hour Disputes:  In some specialty policies or with specific endorsements, EPLI can even cover defense costs for claims related to unpaid overtime or misclassification.

A strong EPLI policy also gives you access to helpful risk management tools, such as:

Employee handbook reviews

Best practice guidance

Vulnerability assessments

Hotlines for real-time HR or legal support

These resources can prevent claims or help contain them before they get worse.

What Should I Do Now?

As with any important decision, there is no “one-size-fits-all” approach when it comes to protecting your Dental Practice. The right solution depends on several factors, some of which include:

Your current policies and procedures

How long your practice has been in operation

Whether it was a start-up or an acquisition

The number of employees and patients at your practice

Employee turnover and retention

The litigation exposure in your region

So where should you begin? Start by talking with your Advisor at CFS Dental Division to review the Employment Practices Liability coverage options that make the most sense for your situation.

Saying goodbye to “Later”

Whether the sun is shining or the rain is pouring, Employment practice lawsuits can drain a thriving dental practice. Legal fees, settlements, lost time, the emotional toll, and damage to your reputation can add up quickly, even when the allegations are completely baseless.

The question is not whether your practice needs EPLI.  The question is whether you will have it in place before something goes wrong.

You don’t want to let “later” become too late.

Written by: Matthew Christy

The Hidden Cost of Recovery: How BOE Protects Your Investment

Tue, 25 Nov 2025 01:19:36 GMT

The Hidden Cost of Recovery: How BOE Protects Your Investment

What is Business Overhead Expense (BOE)? BOE is a type of disability insurance specifically for business owners. It is designed to reimburse an owner's practice for fixed expenses associated with the business if the owner becomes disabled. It is very important to know that BOE insurance does not replace your personal disability income. These policies are designed to help keep the business afloat while you recover. If you have a personal disability insurance policy and own a practice, it is very important that you get a BOE policy in place. If you own a business and just have a personal disability policy in place, then you’re going to have to dip into your personal benefit to help keep the business afloat while you’re out of work. Having the two policies in place allows you to keep your business and personal benefit income separate.

As a dental practice owner, you are solely responsible for keeping your business running. So, if you become injured and are unable to work, your income might stop but the operating costs of your practice will continue. This is where BOE insurance becomes a very important piece of financial and practice management strategy.

What expenses does BOE typically cover?

Employee Salaries: Wages, payroll taxes, benefits for your staff
Rent or Mortgage Payments: The cost of your office space
Utilities and Maintenance: Electric, gas, water, internet, phone services
Insurance Premiums: Malpractice, general liability, property insurance
Professional services: Accounting, legal and billing services
Lease Payments: dental chairs, x-ray machines

Features and Things to consider:

Monthly Benefit - Determining the benefit amount is one of the first steps for getting BOE. The monthly benefit amount should match or slightly exceed the average monthly eligible expenses.

Increase Options - Increase riders are extremely important to have in these policies for a couple of reasons.

One, if you’re just starting your business you may not want to pay for a large benefit of BOE up front so, you are able to get a smaller benefit to lock your health and rates and then increase the benefit later on when the practice is doing well.

Two, As your business starts to grow so will your expenses and it is important to make sure you increase your BOE to properly cover you throughout the years.

Tax Deductible - The premiums you pay on BOE insurance are generally tax-deductible as a business expense.

In some cases, a Business Overhead Expense policy may be required when obtaining a loan but whether it’s required or not, it is a policy that every owner should have. When you get Business Overhead Expense insurance, you are implementing a safe guard for your practice, protecting your staff, and protecting your financial future against any unexpected accidents.

Written by: Michael Dougherty

Why Some Orthodontic Practices Look Profitable But Aren't: Understanding Contracts Receivable

Mon, 17 Nov 2025 23:18:15 GMT

Why Some Orthodontic Practices Look Profitable But Aren't:
Understanding Contracts Receivable

Imagine finding the perfect orthodontic practice to purchase - strong patient base, established reputation, reasonable asking price. You're ready to sign. But hidden in the financials is a detail that could mean the difference between a profitable acquisition and years of financial struggle: contracts receivable. Before we dive into this critical concept, let's start with the basics.

What is Accounts Receivable?

Put simply, Accounts Receivable (AR) is money you've already earned, but haven't yet received payment on.

In most dental specialties, this is minimal. Here's why:

• Fee-for-Service (FFS) practices: Patients pay in full the same day. A filling is done, the patient pays $200, and the transaction is complete.

• Insurance-based practices: The treatment is completed, the claim is submitted, and when the insurance company pays (usually within 30-60 days), the AR is resolved.

In both cases, the work is finished quickly - often in one visit or over a few weeks - so money owed is typically collected within a month or two.

Why Orthodontics Is Different: Enter Contracts Receivable

Orthodontic treatment runs on a different timeline than most other dental procedures. Unlike a crown that can be placed in two visits, or even a root canal and restoration that can be performed in three, orthodontic treatment spans 18-24 months with 15-24 appointments. As treatment is performed over a longer period, and the cost can run thousands of dollars, many orthodontic offices allow for some flexibility with remuneration to make it easier for their patients to afford treatment. Let’s break down the two most common payment structures:

Example 1: The Pay-in-Full Patient

• Day 1: Patient begins treatment. Total cost: $6,000. Patient pays in full.

• Months 1-24: Treatment continues. No additional revenue from this patient.

• For the practice: All revenue received upfront, but work continues for two years.

Example 2: The Payment-Plan Patient

• Day 1: Patient begins treatment. Total cost: $6,000. Patient puts $1,500 (25%) down.

• Months 1-18: Patient pays $250/month ($4,500 total) while treatment continues.

• For the practice: Revenue comes in gradually as work is performed.

That remaining balance - the $4,500 still owed and being paid overtime - is called Contracts Receivable . It's a specific type of Accounts Receivable unique to practices with long-term treatment and payment plans.

While other dental specialists sometimes offer payment plans for large cases, the treatment is typically completed within weeks or months, meaning the acquiring doctor typically isn’t completing the expensive cases started by the previous owner. With Ortho, there can be a full year or more of treatment left, and the selling doctor typically only sticks around for a couple of months post-sale. These unfinished cases become the responsibility of the acquiring doctor to complete, hence why it’s a larger factor to consider when looking at an office to purchase.

Why This Matters When Buying a Practice: The Cash Flow Reality

When you acquire an orthodontic practice, you inherit all active patients - including the responsibility of completing their treatment. This creates a critical question: Has the practice already collected the revenue for these patients, or is money still coming in?

Scenario A: High Contracts Receivable (Good for Buyer)

Dr. Coy’s practice has $400,000 in contracts receivable - money that patients will pay over the next 12-18 months as you complete their treatment. This means:

• ✓ Predictable cash flow to cover payroll, rent, and your loan payment

• ✓ Revenue coming in while you perform the work

• ✓ Strong financial cushion as you build your new patient base

Scenario B: Low Contracts Receivable (Potential Red Flag)

Dr. Coy’s practice has only $50,000 in contracts receivable - most patients paid in full upfront. This means:

• ✗ You inherit 300 patients requiring 6-18 months of continued treatment

• ✗ All the revenue for these patients was already collected (and likely spent by Dr. Coy)

• ✗ You're performing $500,000+ worth of work with little to no income from these patients

• ✗ You must cover all practice expenses while completing "free" treatment

The Bottom Line: In Scenario B, you could be operating at a loss for your first 12 months, even though the practice looks healthy on paper. Additionally, the practice revenue will be higher, potentially inflating the purchase price.

What You Should Do

Every practice acquisition involves some patients who have prepaid in full, meaning there will be work to complete that generates no immediate revenue. This is normal and expected and is part of the goodwill in the transaction. The ratio of how much of the revenue has been realized versus what is still in contracts receivable matters enormously, and should be accounted for during due diligence.

Before making an offer, work with a CPA or a buyer’s representative who specializes in dental acquisitions to:

1. Calculate the contracts receivable ratio: What percentage of active patients still owe money versus have paid in full?

2. Project first-year cash flow: Based on the existing patient base and payment plans, what revenue can you count on while completing inherited treatment?

3. Adjust the purchase price: A practice with low contracts receivable may need a price reduction to account for the "free" work you'll be performing.

4. Negotiate transition terms: Consider asking the seller to leave prepaid funds in the practice account or structure the purchase price to account for future revenue gaps.

Key Questions to Ask:

• What is the total contracts receivable balance?

• What percentage of active patients are on payment plans versus paid in full?

• How many months of treatment remain for the average active patient?

• Will any prepaid patient funds remain in the practice account after closing?

Understanding contracts receivable isn't just about numbers - it's about ensuring your first year of practice ownership is financially viable, not just on paper, but in reality.

Written by: Conor DePalma and Eric J. Coy, DDS

The Building Blocks to Insuring Your Start-Up

Mon, 10 Nov 2025 20:35:57 GMT

The Building Blocks to Insuring Your Start-Up

When it comes to opening a Start-Up Dental Practice, making sure you are properly insuring your business is one of the many tasks on your to-do list. Thankfully, we can help take that burden off your back by not only providing these insurances for you but educating you along the way, so you feel comfortable and knowledgeable in what you are carrying to protect yourself and your business.

Start-Up practices come with a time period where you have physical possession of your leased or owned space, but you are not operating your business yet. During this period your business is being built to bring your design vision to life.

Once the lease or your property closing documents are signed, two important insurances that you will be required to have by the landlord and/or bank is General Liability and Builders Risk Insurance.

General Liability Insurance ensures protection against any outlying claims that are not related to direct dental work. For example, if someone were to get injured on your property, General Liability Insurance would provide coverage related to bodily injuries, property damage, and reputable harm. This type of policy protects you and your practice from legal costs, settlements, and judgements arising from such claims.

Builders Risk Insurance is a property insurance policy that is designed to cover property during construction. This policy protects buildings and structures as well as materials and supplies from numerous risks. Some examples of those risks are fire, lightning, hail, theft, vandalism, explosions, etc. This type of coverage is often needed to be supplemented by a General Liability policy to fully cover a renovation of construction project.

Once construction is complete and equipment begins to arrive at your practice, these policies get cancelled and transitioned into a new comprehensive policy called a “Business Owners Policy.”

What is a Business Owner’s Policy and How Does It Work?

A Business Owner’s Policy is built of 5 major components

• Business Personal Property Insurance – coverage for your equipment, furniture, fixtures, computers, etc.

• Cyber Liability and Data Breach Coverage

• Employment Practices Liability Insurance

• Business Income Interruption Insurance - coverage for lost income for the practice if there is property damage that prevents the office from being open and operational.

• Workers Compensation- a state-mandated insurance that provides your employees with medical, wage, and other benefits if a work-related injury and/or illness occurs while on the job.

Now that we have simplified insurance, you can start your journey on building your plan by contacting your local CFS Representative to learn more!

Written by: Nick Cepparulo

The Jump-Start Dentist

Mon, 27 Oct 2025 10:41:43 GMT

The Jump-Start Dentist

When looking to own a dental practice or dental specialty office a Dentist/Dental Specialist is faced with this daunting choice: ‘Do I buy an existing office or build my own?’ Well, I am hoping to help people interested in their journey bridge this gap and find out what is best for them.

To start, let’s acknowledge some facts here:

Start Ups are not bad. Every office in existence started somewhere.
Buying an office is not bad, there are a lot of good offices that have strong inspiring values that people want to emulate.
There are start ups that do not do too great and have a lot of problems.
There are acquisitions that are overvalued and overpromising you.
Either option can make you a lot more income and seg-waying into ownership will in almost every instance up your income ceiling if done properly.

With this baseline knowledge let us dive into how we can find what is best for YOU. We will start with buying an office since as of October 2025 we have had more acquisitions in play than the last two years combined and there is clearly a shift in the market.

Now there are two main strategies in buying a dental office and today I am going to focus on one strategy that has become very popular, The Jump-Start Practice. Now, purchasing a Jump-Start is basically any office under $600,000 in value. These offices are unique in that they typically carry a lot of hygiene and/or refer a lot of patients away. The income is low but it is normally due to low amounts of active cases or limited availability in the true schedule of the office.

The reason these offices are called Jump-Starts are that they require working and human capital to bring the bulk of the value to the new buyer. You are not buying this office to leave it as is or just do what the existing owner is doing. These offices need TLC (not the TV channel) , but true Tender Love and Care. When buying a Jump-start you are committing to increasing hours, potentially bringing on more staff or paying overmarket to keep on more doctors than the current work load needs. All of this is done for a very intentional reason. You are buying this office to expand and grow and this will require a modest working capital loan from your lender to invest in Marketing, Overstaffing and most importantly revamping the office (typically equipment in this office has been around since you were born and the look will not always appeal to today’s age of patient.)

With all of these hurdles in mind, You might wonder, is this even worth it? The answer I am going to give isn’t the best. The answer is Maybe? We need to check a few items and pass a few tests to make sure you are on track:

1. Run demographics on the area:

Does this area support your procedures you want to perform?

Is there a lot of competition?

Sometimes it seems saturated in an area but dentists are tricky. A lot of people have different selling points to their offices. You need to find a region that supports your preferred market where you can grab strong referral partners and make strategic alliances for a better future.

2. Apply for Funding

Are you lendable? It is important to speak with a Dental Lender to understand where you stand as a borrower. Make sure you will be eligible for working capital and even the offices you are looking at. A lot of people make the mistake of doing this last and this is the most crucial step because if a bank refuses to lend then you probably do not want it.

Find out the maximum you qualify for, this will allow you to hone in on the right parameters of office and keep your goals tangible. Nothing worse than putting in all of this effort and finally getting a great deal to be told you need to wait a year and do it all over again ☹

3. Hire a team

This seems easy but a team needs to be people who jive with your goals and interests. You need a few people in almost every scenario. These people include but are not limited to the following: A financial advisor, Insurance team, Accountant, Banker, Real Estate Agent, Lawyer, and even potentially a consultant!

Some of the team may overlap on duties but the main point is to start building this and pick one of these people to be your quarterback to run the deal. This typically falls on the advisor to run the show and make sure all is going according to plan.

4. Get a valuation

Now I tell all of my clients that you probably want to do a shorthand valuation to start. This means hiring an advisor to tell you if the price is even in the right range! Here at CFS we do it for free within reason and I will tell you why. The main reason is if you buy an office that grows too slow, you will be faced with challenges to offload the office if needed and will most likely be ineligible for future lending until it grows for at least TWO YEARS!

This is the most crucial part as everyone tries to low ball or high ball a practice. Brokers will do it to help their clients on both sides and my advice is to try and buy the office for as fair as you reasonably can. This means being okay with overpaying sometimes as high as 25% on value. Now this does not mean to get ripped off but it means if we have a solid plan to grow than it is okay to overpay sometimes. You can also win in other ways by negotiating better lease terms, locking in the selling doctor on a good rate / longer time frame, maybe even getting other concessions later on. Sometimes the people who underpay for an office get what they pay for: The doctor could bail early, staff doesn’t care / is not bought in, patients do not get a letter, the list goes on and on.

5. Do not get greedy and do not fixate on one office

Just like dating , there are a lot of offices out there and people often feel committed before the process even starts. I would highly recommend reviewing 3-5 offices at a time. Even the less than desirable ones so you can learn how to negotiate and try out the effectiveness of your selected team.

I hope this small article helps anyone in this situation. Please write in if you want other topics to be discussed here or even on the Dental Dummies Podcast! We will be releasing an article every week!

Thank you for your time and good luck on your journey! Make it your own but do not be scared to ask for help. We are fortunate that dentistry has less than a 1% fail rate so do not be discouraged or scared to pursue your dream and be an owner!

Written by: Joseph DiMarco