Updated: Nov 21, 2022
As a dental practice owner, it's important to have the right insurance in place to protect your business. A Dental office business insurance, better known as a Business Owners Policy (BOP) is a great option for business owners as it combines a number of important coverages into one policy.
BOPs typically cover four major categories of business ownership: property, general liability, business interruption, and employment practices liability insurance.
Package policies like business owners' insurance can offer you multiple types of protection at a lower cost than purchasing each individual policy.
You'll also have peace of mind knowing that you're covered on the basics.
In addition to a BOP, you may also want to consider entity malpractice insurance.
Entity malpractice insurance provides protection in the event that your practice entity is named in a lawsuit. Like an individual malpractice policy, an entity malpractice policy may provide coverage for any defense-related costs as well as any awards.
Just as you have professional liability insurance as you practice, business insurance can be equally as important for your practice.
The Benefits of Dental Office Business Insurance (Business Owners Policy)
A Business Owners Policy (BOP) is a great option for dental professionals as it combines several important coverages into one policy. BOPs typically cover four major categories of business ownership: property, general liability, business interruption, and employment practices liability insurance.
Package policies like business owners' insurance can offer you multiple types of protection at a lower cost than purchasing each policy. You'll also have peace of mind knowing that you're covered on the basics.
BOPs can be tailored to meet the specific needs of your dental practice. For example, you can purchase a BOP that includes coverage for loss of income if your practice has to close due to damage from a fire or severe weather. You can also add endorsements to your BOP to cover things like valuable papers and records or cybercrime.
In addition to protecting your practice, dental office insurance/ BOP can also help protect you against employee-related litigation and other risks. Employment practices liability insurance (EPLI) provides coverage for claims made by employees alleging discrimination or wrongful termination.
Having the right business insurance in place is essential for any dental practice.
What is Employment practices liability insurance (EPLI) and does my Practice Need it?
Provides coverage for claims made by employees alleging discrimination or wrongful termination. This coverage helps protect employers from potential financial losses associated with any such claims. EPLI can also cover other legal matters, including harassment and retaliation claims, as well as breach of contract or wage and hour violations.
EPLI is typically offered by insurers as an endorsement to a general liability policy or business owners policy (BOP). An employer should carefully review the terms of their EPLI coverage to ensure that it sufficiently meets their needs. Employers need to be aware of their responsibilities when it comes to managing employee relations to minimize the likelihood of claims being filed against them. This includes having proper policies in place and taking reasonable steps to ensure that all employees are treated fairly and equitably.
Employers should also consider investing in human resource consulting and employee education to help ensure that they are complying with all applicable laws. Taking these proactive steps can help reduce potential liability exposure and minimize the risk of costly legal disputes.
Entity Malpractice Insurance
In addition to a BOP, you may also want to consider entity malpractice insurance. Entity malpractice insurance provides protection in the event that your practice entity is named in a lawsuit.
Like an individual malpractice policy (Professional Liability Insurance), an entity malpractice policy may provide coverage for any legal defense costs as well as any awards.
Entity malpractice insurance can help protect your dental practice from potential risks associated with claims of professional negligence or errors and omissions.
Professional negligence claims
Arise from alleged failure to diagnose or treat a patient's condition, delays in treatment, substandard care, failure to obtain informed consent, or departure from accepted standards of care.
Errors and omissions claims can arise from allegations that you made a mistake in billing or coding, failed to obtain proper authorization for treatment, or made an error in Treatment planning.
An entity malpractice policy
Can help cover the costs associated with defending against these types of claims, up to the limits of your policy.
Entity malpractice insurance can also help protect your personal assets if you are sued as an individual dentist rather than as part of your dental practice entity.
Entity malpractice coverage is typically available through most professional liability carriers and can be purchased as part of a BOP or as a standalone policy.
Do You Own Your Practice Location? Commercial Property Insurance Is Something You Should Consider
This is an essential form of business insurance for dental practices. This coverage helps to protect your practice’s physical assets such as buildings, equipment, furniture, and inventory against damage or loss due to fire, windstorm, theft, vandalism, and other covered perils.
This coverage typically includes protection for the premises where the practice is located, as well as offsite locations such as storage facilities. It may also provide coverage for any business interruption resulting from a covered loss.
Commercial property insurance can be obtained through most standard business insurers but a dental insurance specialist is most suited to meet the needs of your specific dental practice. The policy wording should include all applicable endorsements and riders that are relevant to the type of services you offer and the geographic area in which you operate.
Be sure to review your coverage limits periodically to ensure that they are adequate for the value of your assets. Most policies will require you to maintain detailed records of inventory, equipment, furnishings, and other items that you want to be included in your coverage. Keeping these records up-to-date will help speed up the claims process should you have to file a claim.
There are several important factors to consider when choosing the right insurance for your dental practice.
A Business Owners Policy (BOP) is a great option as it combines several types of coverage into one policy. You may also want to consider entity malpractice insurance to help protect your dental practice from potential risks associated with professional negligence or errors and omissions claims.
When selecting an insurance provider, be sure to work with someone who has experience insuring dental practices so that you can be confident you're getting the right coverage for your needs at the best possible price.
By taking the time to understand your specific risks and coverages, you'll be better protected in the event of an unexpected occurrence.
Having both a BOP and entity malpractice insurance can help give you confidence that your practice is properly protected.
Having the right insurance coverage in place can help protect your dental practice from costly risks, such as those associated with professional negligence and errors and omissions. It’s important to review your coverage regularly to ensure that it meets your needs and is up to date with any changes in the laws or regulations that affect your business.
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