Company insurance is intended to safeguard the financial assets of a business owner and is a crucial investment for dental practises.
This article will discuss the primary insurance coverage for dental offices, general liability insurance, as well as additional policies that are appropriate for this industry.
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Dental Office General Liability Insurance
Every firm, regardless of sector, has risks that should be insured. General liability insurance is the most frequent and comprehensive form of coverage that company owners purchase.
General liability insurance covers the following risks:
Physical harm
Damage to property
Medical expenses
Legal defence and decision
Personal and commercial harm
While general liability insurance is not legally needed for companies, operating without it is exceedingly dangerous. If your company is sued, you might face costs in the hundreds of thousands of dollars (or more). The only way to avoid this sort of catastrophe from destroying your organisation is to have an adequate general liability insurance coverage in place to assist pay for these losses.
Situations That A Dental Office’s General Liability Insurance May Cover
Example 1: While heading to the toilet, one of your patients slips on a damp area on the floor and falls. Because the wet area was not designated, she fractures her wrist and asks that you pay for her medical care. This is most likely covered by your general liability insurance.
Example 2: You’ve started using a new logo for your dentistry practise that you truly appreciate. Unfortunately, one of your rivals determines that it is too similar to his logo and sues your company. You are protected against such claims with general liability insurance. Your insurance will cover the expenses of your legal defence, including the cost of a settlement if you must settle out of court.
Example 3: One of your dental assistants arrives late for work and rushes via the back door. In her rush, she misses a patient and knocks her down. The patient suffers a concussion and sues your company as a result of the accident. Your general liability insurance will cover your legal expenditures, including the cost of an attorney and, if required, the cost of a settlement.
Of course, this is not an entire list of risks covered by a general liability insurance policy, and certain situations may result in a specific peril not being covered. To minimise coverage gaps, it’s always better to speak with your agent about the terms of your policy.
General Liability Insurance Cost
The typical dental business in the United States costs between $350-$750 per year for $1 million in general liability insurance.
The cost of your coverage will be determined by a number of variables. Among them are your:
Location
Deductible
Employees’ number
Per-occurrence restriction
The overall aggregate limit
You may be able to get general liability insurance at a lower cost if you buy it as part of a business owner’s policy (BOP) rather than as a separate policy. A business interruption policy (BOP) is a more complete option that covers numerous types of coverage, such as business interruption and property insurance.
Other Types of Coverage Required by Dental Offices
While general liability insurance is the most crucial, there are various different types of coverage to be aware of. Other forms of insurance that all dental clinics should have are as follows:
Insurance for Professional Liability
As a dentist, you are required to provide professional advise and conduct activities relevant to your professional training and qualifications on a regular basis. Professional liability insurance safeguards you against negligence lawsuits based on errors or failure to perform. If a patient sues you, alleging that your treatment harmed them, your insurance will pay for your legal defence as well as a payout if you reach an out-of-court settlement.
Insurance for Commercial Property
If you lost all of your dental equipment and supplies in a fire or other disaster, it would be quite expensive to replace them. As long as the loss was caused by a covered incident, you may make a claim with your insurer and get financial assistance with replacement expenses.
Coverage Options for Some Dental Offices
In addition to the insurance listed above, your dental practise may need other forms of coverage based on particular elements of your operations. Some of them may not apply to you, so be sure to ask your agent whether policies are appropriate for your company.
Insurance for Workers’ Compensation
Employers in most states are required to have workers’ compensation insurance. If an employee gets injured on the job, workers’ compensation will pay for their medical care. It will also compensate part of their missed salaries as they heal from their injuries.
Umbrella Insurance for Businesses
Your general liability insurance coverage will cover you in most cases, but it is conceivable that the limitations of your policy may be surpassed, such as if you lose a significant lawsuit. However, if you have business umbrella insurance, you will have additional protection that will kick in after your general liability insurance stops paying. If the limitations of your general liability insurance are reached, the umbrella policy will cover the remaining losses.
Additional Security Measures for Your Company
Although investing in company insurance is simple (and necessary), it should not be your first line of defence. Yes, insurance will reimburse your company for cash losses incurred as a result of an occurrence, but it is much preferable to avoid losses altogether.
With this in mind, here are a few steps you can take to better secure your company:
Make use of legally binding contracts and other business agreements. (We provide free templates for several of the most often used legal forms.)
To safeguard your personal assets, form a limited liability company (LLC) or a corporation. (To discover how to incorporate an LLC or company in your state, see our step-by-step tutorials.)
Keep your company licences up to date.
Streamline the internal procedures of your company. This will eliminate unneeded variables from routine activities and establish a secure, consistent environment in which to do business.
If your company is an LLC, you should check into LLC insurance.