Starting a moonlighting position during dental school or residency is an exciting milestone, but navigating the malpractice insurance options can be tricky. Many students are unaware that specialized moonlighting policies exist and come complete with built-in discounts tailored specifically to cover part-time work while you are still in school.

When you shop around for malpractice rates to cover a moonlighting position, some insurance companies will quote you a very low rate which is often just $50 to $100 for the first year. While that looks like a great deal on the surface, there is a major catch. They are using your “New to Practice Discount”.

The "Year 2" Premium Increase

Using a "New to Practice" discount for a student moonlighting is a costly mistake. Malpractice insurance for new graduates is heavily discounted in the first year and steps up in cost over a four-to-five-year period.

If you trigger that discount while you are still in school, the clock starts ticking immediately. When you finally graduate and enter full-time practice, you won’t qualify for Year 1 rates anymore. Instead, you will be bumped up to Year 2 rates, which can cost you hundreds or even thousands of dollars more out-of-pocket than you should be paying.

The Smart Alternative: Keep Your Discounts in Reserve

Instead of burning through your graduation credits early, we highly recommend securing a dedicated moonlighting-specific policy.

These policies typically cost only a few hundred dollars and are designed strictly for part-time, student-level clinical work. By choosing a moonlighting policy now, you effectively freeze your "New to Practice" discounts, allowing you to cash them in for maximum savings when you start your actual career.

Ultimately, keeping these two phases of your career separate is the best way to protect your liability and your wallet.

Written by: Michael Dougherty