Insurance Checkup:
Does Your Practice Have the Right Coverage?
Author: Julie
Goldberg, DDS, Senior Dental Risk Specialist at PMIG
Many dentists
assume they are adequately insured because they have professional liability
insurance. However, as dental practices become more complex employers, business
owners, technology users, and healthcare providers, the insurance needs of a
modern dental practice often extend well beyond malpractice coverage.
A recent request
from an Oregon dentist raised an important question: What insurance coverage is
actually required, what coverage is recommended, and how can a dentist
determine whether they are carrying too much or too little insurance?
What Insurance
Coverage Is Required in Oregon?
Contrary to what
many dentists believe, Oregon generally does not require dentists to carry
professional liability (malpractice) insurance in order to maintain a dental
license. However, many employers, hospitals, dental service organizations
(DSOs), and facility credentialing organizations may require malpractice
coverage as a condition of employment or participation.
For practice
owners, Oregon law does require certain coverages under specific circumstances.
For example, employers with employees generally must carry workers'
compensation insurance to protect employees who suffer work-related injuries or
illnesses. Beyond that, most other insurance decisions are based on risk management
rather than regulatory requirements.
What Coverage
Should Oregon Dentists Consider?
Every practice is
different, but most dentists should evaluate several categories of protection.
Professional
Liability Insurance
This remains the
foundation of a dentist's insurance program. Professional liability coverage
protects against allegations of negligence, errors, omissions, or failure to
meet the standard of care. Professional liability claims can involve legal
defense costs, settlements, judgments, licensing board matters, and expert
witness expenses.
Commercial
General Liability
Malpractice
insurance covers professional acts. General liability insurance covers
non-clinical incidents, such as a patient slipping in the parking lot or
property damage occurring at the practice.
Workers'
Compensation
If you employ
staff, this coverage is often essential and may be required. Workers'
compensation protects both employees and employers when workplace injuries
occur.
Cyber Liability
Dental offices
store large amounts of protected health information, payment card data, and
employee information. A ransomware event or data breach can trigger
notification costs, legal expenses, business interruption losses, and
regulatory issues. Traditional malpractice and general liability policies
frequently do not address these exposures.
Employment
Practices Liability Insurance (EPLI)
This is the
coverage that many dentists discover only after speaking with an insurance
advisor.
EPLI helps
protect employers from claims made by employees alleging wrongful termination,
discrimination, harassment, retaliation, failure to promote, or other
employment-related issues. Oregon's Division of Financial Regulation notes that
these employee-related claims are not covered under standard general liability
policies and require separate employment practices coverage. As practices grow
and staffing challenges continue, EPLI has become an increasingly important
discussion point for many dental practice owners.
Property and
Business Interruption Coverage
If you own or
lease a practice, consider how a fire, storm, equipment failure, or other event
could affect business operations. Property insurance and business interruption
coverage can help protect the physical practice and lost income during
restoration periods.
Umbrella
Liability
For
dentists with significant personal or business assets, an umbrella policy may
provide an additional layer of protection above underlying liability limits.
How Do
You Know If You're Underinsured?
A useful
exercise is to ask:
·
Could one lawsuit threaten
my personal or business assets?
·
Do I have employees?
·
Do I store patient
information electronically?
·
Do I own a building or
expensive equipment?
·
Would my practice survive
several weeks of closure?
·
Have I added services
since my policy was first written?
Dentists
often discover coverage gaps after expanding services, adding associates,
introducing technology, performing new procedures, or growing staff.
For
example, a practice may have excellent malpractice coverage but no EPLI
protection despite employing a dozen team members. Another practice may have
robust property coverage but minimal cyber protection despite relying entirely
on digital records.
How Do
You Know If You're Overinsured?
Being
overinsured is less common than being underinsured, but it can happen.
Warning
signs include:
·
Overlapping policies
covering the same exposure.
·
Coverage limits that far
exceed realistic risk exposures.
·
Endorsements purchased
years ago that no longer apply.
·
Continuing to pay for
coverages related to services no longer offered.
The goal
is not simply to buy more insurance. The goal is to purchase the right
insurance for the risks your practice actually faces.
Conduct
an Annual Insurance Review
At least
once a year, consider sitting down with your insurance professional and
reviewing:
·
Current policy limits
·
Covered professional
services
·
Exclusions
·
Endorsements
·
Employee count
·
Practice ownership
structure
·
Cyber exposures
·
Employment-related risks
·
New procedures or
technologies
·
Real estate and equipment
values
An
annual review often identifies both gaps and opportunities to simplify
coverage.
Bottom
Line
Most
dentists recognize the need for professional liability insurance. Fewer
recognize that today's dental practice faces risks that extend well beyond
malpractice allegations. Employment-related claims, cyber incidents, workplace
injuries, property losses, and business interruptions can all create
significant financial exposure.
Rather
than asking, "Do I have insurance?" the better question may be:
"Does my insurance still match the practice I have today?"
A
periodic review with a knowledgeable insurance professional can help ensure
that your coverage evolves as your practice evolves, reducing the risk of
discovering a gap only after a claim occurs.
For questions
related to dental risk management, contact Dr. Julie Goldberg, Senior Dental
Risk Specialist with PM Dental Protect, PMIG. julie.goldberg@phmic.com
This information is
intended to provide general information only on specific risk management
topics. It is not intended to provide coverage determinations or coverage
positions, nor is it to be construed as legal, medical, or professional advice
in any form whatsoever.
