Why Dentists Need Professional Liability Insurance

January 14, 2021

Often referred to as Dental Malpractice, Errors & Omissions Insurance (E&O) or Professional Indemnity, professional liability insurance policies are designed to protect the insured individual or organization from responsibility for any losses suffered by their customer as a result of the policyholder’s actions.

Liability insurance is critical for anyone who drives a car, owns a business, or practices law, medicine or dentistry.

How Insurance Works

Insurance premiums are based on risk, and the price for premiums is partly based on an insurer’s best estimate of how much they will be required to pay out in claims on the policies it wrote in any given year.

To cover the cost of lost claims, insurance companies use the premiums paid by their policyholders in that year. In addition to payouts, insurance premiums are also calculated to include operating expenses and underwrite taxes.

In 2019, the value of insurance premiums written in the United States was $1.32 trillion.

What is liability?

Liability is when your company is held responsible for damages or losses to a third party.

For example: If someone slips and is injured while visiting your premises, you may be held responsible for any resulting costs. Lawsuits are very costly, and not only can they be a serious financial blow, the impact on your reputation could be devastating.

You may feel like you haven’t done anything wrong, but still find yourself involved in a lawsuit. In these situations, the right kind of insurance can protect you and your business.

What is Liability Insurance?

Liability insurance is a blanket term that refers to coverage for costs associated with third-party liability issues, and is designed to protect business owners if they are found legally responsible.

As a business owner, you are exposed to a range of liabilities that can subject your assets to substantial claims. To safeguard your holdings, you need to build an asset protection plan with the right liability insurance coverage as it’s cornerstone.

3 Things You Need To Know About Liability Insurance

It provides protection against claims resulting from injuries and damage to people and/or property.
It covers legal costs and payouts that the insured party is found liable for.
It does not cover intentional or criminal acts – even if the insured party is found legally responsible.

Why Professional Liability Insurance Is Important For Dentists

As a professional, you know that every time you operate on a patient there is a chance that something can go sideways. It doesn’t matter how well trained you are, accidents can happen at any time, and even if it isn’t your fault, you could still be sued.

Professional liability insurance for dentists can offer protection from the Damocles sword of patient lawsuits.

Not only will professional liability insurance cover medical expenses that the patient may incur, but it also offers financial protection against lawyer fees and court costs, and protects your employees in the same manner that it protects you.

How Much Professional Liability Insurance Coverage Do Dentists Need?

Not having enough insurance is never a good option. If you lose a lawsuit and do not have adequate coverage, it could mean you’ll have to pay out tens of thousands of dollars, or more. This is why an average sized dental practice should consider at least a 2 million dollar policy.

Because every dentist and dental practice is different, the cost of insurance policies vary, but, generally speaking, most dentists will pay anywhere from $300 to $1,000 + a year for coverage.

When a patient is dissatisfied with your care, it is important to:

Remain calm and professional
Be empathetic
Maintain confidentiality
Keep notes
Refrain from admitting liability
Notify us immediately

Your liability protection could be jeopardized if claim situations are not handled properly. We can help you manage reportable situations, and mitigate negative outcomes. With our user-friendly online platform, it’s fast and easy to get a free, customized, liability insurance quote for your business. Our dedicated insurance team is always ready to help you customize your insurance policy to meet your unique business needs.

calling your insurance agent with a black phone

17 Reasons to Call Your Insurance Agent

September 14, 2016

We know that when the best (or worst) happens in life, we’re usually the last phone call you think to make. Your insurance, however, is affected by nearly every big thing and plenty of seemingly small things that happen in your life. When change happens, make sure to give your insurance agent a call as soon as you can. A simple phone call can be the difference between paying more or saving money.

Personal Reasons

A lot of things happen throughout your life. Give your insurance agent a call for any of these reasons.

You move out but don’t sell your home. You may need a landlord policy if you’re renting, and you’ll need to let your auto insurance know your new address. If you’re not renting out your place and it will remain vacant, your insurance agent needs to know that, too.
You decide to work from home. A basic business insurance policy may be in order to protect you and your new business.
Always call when you get into a car accident.
If you buy or receive new valuables such as jewelry, antiques, art, or collectibles, call to make sure you have enough coverage.
Home remodels and renovations may change how much homeowner’s insurance you need.
When you buy a new home, you’ll need a new homeowner’s insurance policy.
After you get home with a new baby, give us a call and let’s discuss life insurance.
Call before you get a new dog to make sure your current policy covers the breed.
Whether you experience the loss of a death or divorce, call when your marital status changes. Your health, life, auto, and home insurance will all be affected.

Commercial Ventures

Whether you’re a current business owner or you’re considering opening up a new business, there are several reasons to call your insurance agent.

You want to open a new business – in your home or at a separate location.
You already own a business but the location is changing.
When you open new locations for your business.
When you want to change the products or services you provide to your customers.
If you decide to change your operating procedures.
If you change your legal classification, for example from sole proprietor to LLC, you need to let your insurance agent know.
When you buy a new vehicle for your business or add to your existing fleet, you’ll add or change your commercial auto insurance coverage.
Before you sign a contract or lease so we can tell you how it changes your existing insurance coverage.

Your insurance agent should be more than happy to take your call and explain what these changes, personal or commercial, mean for your insurance coverage. You may be surprised at how all of these changes impact your insurance.

Whether you need to report changes or you’re looking for a new policy, Click Insurance is happy to take your call, answer your questions, and make sure you have the right insurance coverage for your individual situation. Contact us today.

a calculator being used to determine the cost of a Massachusetts business insurance policy

8 Business Insurance Policies Every Business Needs

March 28, 2016

Whether you’re a small office with two employees or you’ve got a big retail space in the nicest shopping plaza in town, you’ve got a business to run and protect. This is your livelihood and your dream; you built it. Don’t let one accident and a lack of protection destroy it.

Take a look at this list of business insurance policies – some may be familiar, some may not – that you need to protect your business.

General Liability

A Massachusetts General liability insurance policy is a staple of almost any business. This protects you when someone who doesn’t work for you is injured or suffers damage while at your business or at a location your business is responsible for. General liability pays the claim and covers you in the event of a lawsuit.

Workers’ Compensation

If you have even one employee working for you, you need to think about Massachusetts workers’ compensation insurance. We’ll have to look at your specific business operation to determine if you need workers comp. Most businesses are required to buy coverage. It pays for the lost wages and medical expenses for employees who become injured or ill while doing their job. You’ll also be covered if your employee decides to sue.

Professional Liability Insurance

Also known as errors and omissions (E&O), professional liability protects you if you make a mistake in the course of your service as a professional or if there’s a failure to perform. Each industry has it’s own standards for what is covered, when you need to buy coverage, and what you may need to be aware of when filing a claim.

Commercial Property Insurance

Even if you don’t own the building you work in, you own the equipment, inventory, signage, and furniture. In Massachusetts, commercial property insurance covers your business property in case of damage from fire or storms and from theft. Like home insurance, floods and earthquakes are not usually covered and require separate policies.

Commercial Auto Insurance

You should already have personal auto insurance, but now it’s time to think about a commercial auto insurance policy. You should buy coverage if you own company vehicles, you use your vehicle for work on a regular basis, if you have delivery drivers, or if your employees regularly use their personal vehicle for work-related tasks.

Cyber Liability Insurance

If you take in personal information and payment information online or save your clients’ personal information in a database for any reason, you need cyber liability insurance. This protects you in the event that you’re hacked and your customers’ information is compromised. When this happens, you’re required by law to notify every single person in your database and to monitor their credit for a certain period of time. This coverage will cover those costs for you.

Business Interruption

We all know anything can happen at any point – a big storm, a fire, or some other devastating event that may interrupt your business. You still have employees to pay, and you need to rebuild, but you have no income while your business is closed. Business interruption coverage takes care of that until you’re back up and running again.

Umbrella Policy

No matter how many policies you purchase, you’ll never be able to cover everything. Even if you do, all it takes is one big claim to exceed your insurance limits. Umbrella policies cover many things that standard policies don’t, but they also help you pay big claims that are over your insurance limits.

If you’ve realized that you’re lacking a few business insurance policies or want to discuss the option of bundling a few policies together, contact us today so we can help you protect your business.

Category: Business Insurance