Practice Management

California Dental Association Practice Support Center 866.232.6362 cda.org/compass

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Guide for the New Dentist - Chapter 2
Insurance
It’s important to protect your personal and professional security at every stage of your career. This chapter helps you understand the appropriate limits and coverage types as well as when and why each is necessary. You can explore content by your stage of practice or individual coverage types. Enjoy!

0-5 years in practice
State Board Exam Coverage To obtain your board exam coverage certificate, complete and submit a provisional membership application. After You Obtain Your License Once you receive the result of your exam and obtain your license, contact TDIC Insurance Solutions for more information about professional liability insurance coverage. Call TDIC toll free at 800.733.0633. Working Interviews You need professional liability coverage to practice dentistry in any capacity. This includes working interviews or if you practice as a hygienist. TDIC offers new graduates a 30-day coverage binder for the time after you receive your state dental license, but before you begin to practice dentistry. This special service provides temporary insurance coverage while you complete your formal application for organized dentistry and for TDIC Professional & Business Liability insurance. Prior to attending your interviews, contact your TDIC broker to activate your 30-day binder. You only need one binder, so you just need to make one phone call. Once bound, your coverage begins right away and the 30-day period is reflected in your policy statement. You must pay your binder premium within 30 days. Once hired, you’ll need: Professional and Business Liability This type of insurance offers protection for legal obligations for injury due to acts or omissions in the rendering of professional services by licensed dentists, employees, partnerships and dental corporations. Coverage to guard dentists from claims surrounding advertising injury, slips and falls, hired and non-owned auto and fire/water legal liability. Health Accidents or illness can happen at any age and you should make sure you are covered financially should anything happen. Health insurance is designed to protect against the cost of hospital and medical care arising from an illness or injury.

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building and its contents are fully protected.Insurance | 2 of 4 cda. respectively.org/compass Life Life insurance is a critical part of a sound financial plan. while only eight percent are the result of accidents? Furthermore. To top it off. Hand strains and hand lacerations rank numbers two and three. most couples would need to double their current insurance amounts. Disability Disability insurance provides a source of income when you are unable to work due to a covered injury or illness. failure to report an injury is a violation of Workers’ Compensation regulations and can result in substantial penalties. according to the Hartford Steam Boiler Inspection and Insurance Company. In fact. a data breach can cost a dental practice $25 to $200 per breached record. a family. Data Compromise Data compromise coverage helps recover loss or theft of patient and employee personal information. That’s why experts recommend that a typical married couple have enough coverage to replace 7-10 years worth of income. Being underinsured. Additionally. The average dentist has 6.000 patient files on record with personal information such as credit/debit card. 6-10 years in practice Building & Business Personal Property If you own your practice. or plan to have. many dentists are discovering that it is more important than ever to ensure that future income is protected. Individual Life and Accidental Death and Dismemberment Insurance products are available in many different configurations to offer options and supplemental coverage as your needs evolve. building and its contents. half of small businesses have experienced a security breach. especially if you have.Chapter 2 . The good news? Most dental office injuries do not result in an employee missing work. As savings plans. or non-insured. . puts your family at risk for financial hardship. Did you know that more than 92% of disabilities are caused by illness. needle pricks are the number one injury in a dental office. Workers’ Compensation Required by law and all states. driver license and Social Security numbers. These statistics are sobering. it’s crucial that your office. three in 10 workers entering the workforce today will become disabled before retiring. even during the early stages of your career. Group Term Life. stock portfolios and investments are buffeted by today’s weakened economy. To meet this. Workers’ Compensation mandates that employers promptly report work-related injuries. Office property insurance provides comprehensive protection for your dental office. and point to the real long-term value of disability insurance. But minor or not.

Often confused with Workers’ Compensation it differs in that EPLI pays for covered costs in case of a wrongful employment claim. Types of claims typically covered under EPLI include: • • • • Discrimination (age.Insurance | 3 of 4 cda. In California. Department of Health and Human Services reports that more than 70% of Americans age 65 or older will need long-term care for an average of three years during their lives. membership fees and dues. etc. settlement and civil damages incurred if an employee or applicant files an employment claim against you. and accounting services. employee salaries. disability. choose one that will adjust for inflation. race.) Wrongful termination Harassment Unfair treatment Business Overhead Expense This insurance provides the essential funds to operate your practice should you become completely disabled. a three-year stay in a nursing home can cost more than $260. and increases 6% every year. equipment leases. You may use the policy for such items as rent. Medicare and private health insurance do not cover the majority of these costs.S. With an average claim cost of $75. even the most prudent savers will exhaust their nest egg to pay for care. this coverage is essential if you have employees. The U. you should continue to carry coverage from previous stages as well as add a few more to ensure your nest egg remains intact.000. interest payments on equipment and furniture. Without careful planning. utilities. and ensure your life savings and family’s assets are protected. not if an employee is hurt on the job. long-term care coverage includes costs for skilled nursing and assisted living facilities. Purchase a policy at today’s lower rates. Take steps now to put long-term care in place. 11-20+ years in practice As you venture into the age of retirement.org/compass Employment Practices Liability (EPLI) EPLI pays for defense costs. in-home health care and personal care. . Long-Term Care This benefit was designed to pay for care if you are impacted by chronic illness or disability.Chapter 2 . business insurance premiums.000. and includes most standard fixed expenses customary to your practice. It’s cost effective and typically provides up to 24 months of coverage. sex.

Includes: • • • • • Up to $500 in daily benefits Up to 500 days of coverage for hospitalization Convalescent care and pregnancy benefits Guaranteed issuance No health statement needed .Chapter 2 .Insurance | 4 of 4 cda.org/compass Hospital Indemnity If you are hospitalized due to a covered sickness or injury hospital indemnity provides you and your eligible dependents with a daily benefit.

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