{ business solutions } by Lindsey Kutscher, Missouri Dental Insurance Services
Dental Practice Hidden Liabilities Can You Survive a Loss with Your Current Policy?
liabilities you may not have previously con- sidered. While you probably already realize the importance of professional/malpractice liability, how knowledgable are you about your business owner’s policy (BOP) and its liability coverages?
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First, some vocabulary. Often, we notice our clients use the term general liability interchangeably when referencing premises liability or professional liability. General liability from a commercial standpoint is typically in reference to premises liability. If you’re a practice owner and/or indepen- dent or sub-contractor, make sure you have general liability in place in the event a patient or other third party were to be injured on the premises. A simple example is a patient fall- ing on the way to an operatory.
Whether you own the practice or are work- ing out of an office space as a sub/indepen- dent contractor, your premises liability is the same. A patient was there to see you, thus you or your legal entity can be held liable for an injury on the premises.
Professional liability does not come into play in a situation like this, as the incident is not treatment related. However, general lability does because the incident occurred in/on the premises in which you were practicing. If you’re a practice owner who also owns the building for which you’re practicing in, you have even greater exposure! In this instance, your liability exposure is not limited to the office space in which you practice, but extends to common areas of the building, space occupied by other tenants and even the parking lot.
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You’ve heard it before: you get what you pay for. That said, not all BOPs are created equal. While most captive agencies are hyper- focused on property, contents and general liability coverage, MDIS knows these are just a few of the many puzzle pieces necessary in protecting your livelihood. Some of the most utilized coverages by our insureds aren’t even included in a captive agency’s policy, includ- ing the following examples.
Business Interruption | What if your practice sustained a tremendous physical loss such as a fire? Would your current policy provide business interruption coverage which helps pay overhead expenses for your practice while you’re not able to work? It is likely if you had a loss, you’ll need to find a tempo- rary location to work while restorations are being made. This type of coverage will help pay rent, utilities, staff salaries and other business-related expenses when your practice suffers a physical loss.
Computers & Media | Does your policy have a separate limit of coverage for computers and media? If not, it should. Replacement of computers and media (e.g., digital x-rays) could be time consuming and costly. Some agencies might tell you these items are covered in your business personal property (or contents limit) but may not increase your
s a dentist, you face a fair amount of liability in your day-to-day practice, and if you’re a prac- tice owner, you face additional
limit of coverage accordingly. If your policy does not have automatic coverage for com- puters and media, make sure your business owners/contents limit is where it should be.
Legal Expense Coverage for Court or Review Boards | While most carriers do not offer this endorsement as part of their business owners policy, an MDIS carrier does! This is an important coverage to have if you’re called in front of a court or review board for issues other than treatment of patients and it does just what it says: reimburses you for legal expenses.
Tenant Improvements & Betterments | Do you lease your office space? If so, check your current policy to see if you have coverage for leasehold improvements (otherwise known as tenants’ improvements and betterments). Often, we learn that our insureds (as ten- ants) are responsible for improvements made to the office space. This would include operatory cabinets, light fixtures, paint, flooring, etc. If you don’t have insurance pro- tection for items such as these, you’ll likely be paying out of your own pocket to restore these enhancements in the event of a loss.
A word of advice? Take the time to look over your policy! We know this task may seem daunting, but it is important to make sure you know what you’re paying for. Make sure you have adequate coverage and that your liability exposures are being addressed, as this could be a matter of whether you’re able to keep your practice doors open after a loss. We often find that even while some agen- cies do offer similar coverages, they are not providing adequate limits of coverage. f
MDIS is happy to review your current policy and offer recommendations or even provide a no-obligation quote. Call Lindsey at 800-944-7550.
