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: 

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). 

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