Choosing the Right Malpractice Policy for Your Dental Career

The average dentist is sued at least once in their career, and most never see it coming. That’s why having malpractice insurance is an essential part of practicing dentistry. A malpractice policy offers coverage and defense against accusations of negligence that may be brought against you. Malpractice insurance is the best way to protect yourself from the threat of lawsuits that can jeopardize your career, practice, and financial stability.

Purchasing dental malpractice insurance requires some strategy. To make an informed decision, you should:

1. Compare policies
2. Regularly assess your business needs
3. Consult a professional for guidance

It’s crucial to understand the available policy types before choosing a specific one.

What Are the Different Malpractice Policy Types?

There are two main malpractice policy types dentists can choose from: Occurrence and Claims-made. To decide which one will best meet your unique needs, you must first understand each policy’s benefits and limitations.

• A Claims-made policy covers claims that are brought against you during the policy period, regardless of when the incident occurred. Your protection ends at the end of the policy term. If you leave a practice or retire, you’ll most likely need to purchase tail coverage.

• Tail coverage (sometimes called an Extended Reporting Endorsement) keeps you covered for any claims made against you once you stop practicing or end your Claims-made policy. Tail coverage can be expensive, sometimes double or triple your current annual premium.

• An Occurrence policy covers incidents that occur during the policy period, even if the claim is made after the period ends. Occurrence coverage doesn’t end when the policy ends. If someone files a claim against you, your Occurrence policy from the year of the incident will cover you. Each year you renew your policy, you have a new set of limits to protect you from any future claims that result from incidents occurring that year. 

Though Occurrence policies are generally more costly upfront than Claims-made policies, when the cost for tail coverage is factored in, Occurrence is often cheaper than Claims-made coverage in the long run.

As your insurance needs evolve over time, you’ll need to review your policy regularly and make adjustments as needed. In doing so, you can ensure you always have the right coverage for your current circumstances.

Cost Considerations for Each Policy Type

The cost of a dental malpractice policy varies by location, claims history, and other factors. Claims-made policies typically cost less during the first year, while rates increase annually as the policy progresses. This option may be more desirable for new dentists due to lower initial premiums.

Conversely, the cost of an Occurrence policy can be higher at first, but over time, the premiums are more stable and predictable, often making Occurrence coverage more affordable in the long run. 

Learn more about malpractice insurance pricing in this article.

Solo vs. Group Practice

Understanding your specific role within a practice will help you determine which policy type and limits will best apply to your situation.

Owning a Practice

As owner of your practice, you are often a marketer, HR manager, CFO and CEO. Much of your own time, energy, and money are invested in building your practice. That’s why it’s important to know that your practice, just like you, can be named in a malpractice lawsuit. 

There are two main business entity malpractice coverage types: Separate Limits Coverage and Shared Limits Coverage. 

• Separate Limits Coverage allows defense costs and indemnity payments to be paid on behalf of your practice ­separately from your individual policy limits. You may qualify for this option if you own all or a portion of your practice.

• Shared Limits Coverage means defense costs and indemnity payments will be paid on behalf of both you and your practice under one shared set of limits. This may be the right option for you if you have a solo corporation with no employed or contracted dental associates.

MedPro Group offers competitive business entity malpractice insurance solutions to help protect you and your practice. 

Joining a Group Practice as an Associate

Associate dentists, employed by practice owners, may get malpractice coverage from their group practice. If you don’t understand the coverage terms set by your employer, request a copy of the policy.

Whether you’re full-time or part-time, your employer’s policy may not satisfy your coverage needs. Depending on employer preference, you may be able to purchase individual coverage out of your own pocket.

Retiring from a Practice

As a retired dentist, you remain at risk for malpractice claims, even years after treatment. Tail coverage is especially important at this stage in your career if you were previously covered under a Claims-made policy. 

Some carriers, like MedPro Group, offer free tail upon retirement, regardless of your age. To qualify for free tail upon retirement with MedPro, you must:

• Be fully retired
• Have a retroactive date at least 48 months prior to the date of retirement
• Be insured by the company for 12 months on a mature Claims-made policy

With free tail from MedPro, you can retire earlier with ease and peace of mind.

Other Policy Factors

Consider these additional aspects of a policy before signing on the dotted line.

Policy Limits: The maximum amount an insurer is willing to pay for a claim filed against you.

• For Claims-made coverage, you must renew your policy annually to remain protected by claims, even if the incident happened in the past when you had coverage.

• Occurrence coverage provides a separate set of limits for each year you buy the policy. These limits never expire. If someone files a claim, you will still be covered by your policy from the year of the incident.

No matter the coverage type, make sure your limits are high enough to protect you throughout your career. Certain risks are better supported by higher limits. Consult with an insurance expert to determine how high your limits should be to best suit your practice.

Additional Coverages: Added policy benefits such as cyber liability, HIPAA coverage, audit coverage, and billing errors coverage. Remember to check these add-ons to make sure your practice is appropriately protected with the necessary additional coverage options.

Pure Consent Provision: A detail on your insurance policy that determines whether you have the right to refuse to settle a claim. Make sure the consent provision in your policy gives you that power without exceptions.

Learn more about how these factors play into choosing a policy in our Guide to Malpractice Insurance.

Need Additional Support? MedPro Group Is Here to Help.

Before deciding on a policy, it’s best to consult a professional who specializes in malpractice insurance for dentists. Experts at MedPro can help you navigate the complexities of choosing a policy so that you’re confident in your decision. With over 125 years of malpractice experience, you can rest assured knowing MedPro Group will protect your good name.

To get started, schedule a free consultation or get a quote today.